Australian Competition and Consumer Commission (ACCC) chief Rod Sims said that Australian manufacturers face lack of financial sustainability due to increasing energy prices, according to a report by the AFR.
The report said that according to an analysis of national energy markets conducted by the ACCC, Australian manufacturers are too dependent on gas for power.
“It was surprising to me during the ACCC’s gas market study to observe how many Australian manufacturers were dependent on gas,” Sims said.
“It was often a significant part of their cost structure. They either used gas as a feedstock, or they had invested so much into using gas for energy that it was now too costly for them to switch.”
Sims also warned that Australia’s current high east coast gas prices, which are far higher than they should be will at best curb investment and job creation at many facilities.