Kennett urges gas price help

FORMER Victorian Premier Jeff Kennett has called on the Federal government to take “whatever action is necessary” to force gas suppliers to enter into new contracts at the legislated price.

Mr Kennett, pictured, the chairman of the Food Revolution Group, owner of The Original Juice Co brand, said there were hundreds of small manufacturers threatened with closure or operating at a financial loss as a result of high gas prices. “There is little value passing legislation putting a cap on the price of gas, if there is no means of ensuring gas suppliers roll over existing contracts when they expire at the (legislated $12 a gigajoule) price,” he said. “Every day, as contracts expire, companies (particularly small companies) and businesses are having to accept a default rate that might be as much as four times their contracted rate.”

He said some default prices were going from approximately $12 to $48 a gigajoule.

“So, a small business with a gas bill of $50k a year will go to $200K or more,” he said, calling it “unsustainable”.

Mr Kennett pictured has called on Prime Minister Anthony Albanese and premiers to address the issue at the forthcoming national cabinet meeting. Mr Albanese on Thursday defended the government’s market intervention as “sensible”, saying the wholesale price cap would save manufacturers from closing down.