Rude energy shock awaiting NSW businesses and households NSW energy policy is threatening state investment, damaging energy security and is set to cost jobs and drive up energy costs, according to a new report written by ACIL Allen Consulting.
In response, APPEA – in conjunction with the Australian Workers’ Union and Australian Industry Group – has written to NSW Premier, the Hon Barry O’Farrell MP, highlighting the likely consequences for industry, manufacturing and households of failing to adequately encourage the development of the state’s natural gas reserves and resources.
APPEA commissioned the ACIL Allen Consulting work to highlight the likely economic and energy security consequences for NSW of current policy settings.
Modelling compares two contrasting scenarios. The “Base Scenario” entails the natural expansion of the state’s gas industry, while under the “CSG Freeze Scenario” NSW continues to source 95 per cent of its natural gas from other states.
The study finds a CSG Freeze Scenario would result in:
APPEA Chief Executive David Byers said: “The failure of NSW to respond to increasing gas demand and develop its gas reserves will have unfortunate consequences, in the form of lost jobs, higher prices, and foregone economic opportunity.
“Appeasement of vocal and extreme minorities has meant NSW now faces unnecessary economic and energy security risks.
“Reactive policies such as the blanket exclusion of vast tracks of the state from gas development should be urgently reconsidered.”