The federal treasurer has warned that there is no quick fix in the spiral of energy prices in Australia, following warnings that gas supplies could be cut off amid a wave of polar winter temperatures.
The next 24 hours are expected to be especially cold on the east coast of Australia, but more than 100 gas suppliers in Victoria, South Australia and Tasmania could be forced to shut down supply due to shortages.
Treasurer Jim Chalmers said it was a “perfect storm” of factors contributing to another escalation in the cost of living.
A polar shock is coinciding with gas shortages in southeastern Australia. (James Morris)
“It’s important to recognize that there are no measures that can fix it overnight,” Chalmers told Today.
He said a long-term solution would involve injecting “some certainty” into the energy market and providing energy that is efficient, cleaner and cheaper.
“The most immediate options will obviously be part of a discussion with companies and also with the relevant ministers and I really don’t want to get ahead of those discussions,” he said.
He promised that the government was already working to address the problem, but said it would be “difficult” to secure domestic gas supply at the expense of export volumes.
Given the dire situation, the operator of the Australian energy market has for the first time invoked a mechanism to guarantee emergency supply to gas producers.
And there are calls from manufacturers and consumer groups for the federal government to step in to curb rising electricity bills.
Meanwhile, the ice explosion in the southeast of the nation will continue.
Australia opens the first day of winter with heavy snowfall
Parts of Queensland are getting ready today for one of the coldest days of the year.
Harmful gusts of wind are being reduced, but a frost warning has been issued in most of Victoria as temperatures in some areas drop to -2ºC.
In NSW, attention has focused on the dangerous conditions of surfing along the coast.
And there is no end to it coming quickly, with meteorologists warning of another cold Antarctic front stretching across South Australia through Victoria and into NSW after it has passed.