Premier Jeremy Rockliff says Tasmania is not facing an imminent gas supply shortage, despite a warning from the Australian Energy Market Operator.
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AEMO has issued a warning over supply shortages for Victoria, South Australia and Tasmania, due to low reserve conditions, and told more than 100 industrial users they may have to cut gas usage.
Mr Rockliff in Parliament on Thursday said the notice from AEMO was the result of administered market caps at trading hubs being set a lower price than the export of liquified natural gas.
"This in turn caused producers to not offer gas for sale to generators in New South Wales, South Australia, Victoria and Tasmania," he said.
"I'm advised that there is no imminent gas supply shortage in Tasmania."
He said AEMO had activated the gas supply guarantee and expected the market would respond by supplying more gas for sale.
Under questioning from Labor leader Rebecca White, Mr Rockliff would not confirm when the government would release its gas strategy for Tasmania.
Labor's energy spokesman Dean Winter went on to criticise the government for failing to carry out its policy to delink the state from the nation energy market which would protect the state from energy price shocks experienced across the country.
Energy Minister Guy Barnett denied this was the case.
"In 2018, following our election commitment and during a period of volatile mainland energy prices, the government fulfilled its promise and effectively delinked from mainland wholesale market volatility through legislated, capped regulated power prices and the commercial and industrial rebate scheme," he said.
"These measures ensured that wholesale impacts being experienced by mainland customers did not immediately impact on Tasmania. This occurred over three years from 2017-18 through to 2019-20, mitigating the impact on Tasmanian consumers.
"Following that period, wholesale electricity prices stabilised and the Tasmanian Energy Regulator has set the prices for the past two years."
Political reporter for Australian Community Media, based in Hobart.
Political reporter for Australian Community Media, based in Hobart.
