The Australian Energy Market Operator has activated the Gas Supply Guarantee mechanism, which will see the gas industry work with the regulator to improve gas supply in Australia's southeastern states in the coming days, following soaring wholesale prices.
The Energy Users Association of Australia's chief executive Andrew Richards says Australia is facing an unprecedented situation, which is not just a short term problem but something that needs to be dealt with for the long term.
"This is the worst energy crisis we've had in 50 years. You had to go back to the 70s, where you see price shocks of this magnitude. We're quite concerned that these price shocks will continue for some time. The time for action is now if we want to start resolving these issues for consumers."
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But the federal government could intervene. New Climate Change and Energy Minister Chris Bowen told Australians the government will take whatever action is needed to help ease the pricing pressures.
Mr Bowen says even if the legislated trigger is pulled, it would have no effect on the short term energy crisis.
"It cannot come into force until January 1 next year even if it's pulled today, it is not a short-term answer. There is a process outlined under law of consultation, which would have to occur before implemented. It is a supply trigger not a price trigger."
