Energy Minister Chris Bowen has defended Australia’s gas companies, saying they had responded when the federal government needed them to.
Mr Bowen said the companies have a “social licence” to do the right thing by consumers.
“There’s a social licence against companies, and gas companies need to do the right thing by Australian domestic consumers both industrial and domestic,” he told the ABC on Thursday.
Mr Bowen ruled out imposing windfall taxes on the gas companies.
The energy market operator will have powers to store gas, while the scope of regulators will be boosted to ensure transparency in the sector.
The minister had on Wednesday convened a roundtable with his state and territory counterparts, where they were briefed by the Australian Energy Regulator, Australian Energy Market Operator (AEMO), and the head of the Energy Security Board (ESB).
They agreed to an 11-point plan at the emergency meeting, called as the nation’s power suppliers struggle with gas shortages and soaring energy prices.
Mr Bowen said there was no “silver bullet” or overnight fix, blaming his predecessors for a rigid energy grid unable to adapt to evolving pressures.
“The (AEMO) could not procure some gas and keep it in reserve to be released for urgent and crisis situations,” he said following the meeting.
“That is technically possible. There’s storage facilities around the country. We agreed to work to give AEMO that power, and to give them that power expeditiously.”
The Australian Energy Market Commission has been instructed to proceed with the development of the capacity mechanism which ensures power plants are available to generate electricity when needed.
The capacity mechanism will focus on new technologies such as transmission, storage and renewables, but Mr Bowen would not rule out the use of coal-fired power plants when asked if they would be included in the energy mix.
“It’s designed to improve the capacity in the system,” he said.
“I also believe it should be expert led. In terms of the detailed design, the ESB will do their work and put it out for detailed consultation.”
The development of a national transition plan for the energy market ahead of the next meeting in July has also been agreed to.
