“Australia’s opportunity to become a global energy superpower is at risk because of increased competition from lower-cost countries and a domestic energy market not fit for purpose for the 21st century,” BCA CEO Jennifer Westacott said.

The submission titled “Australia’s Energy Advantages” has called for more collaboration between governments, community and businesses on energy policy and for a greater push to unlock energy reserves.

“Our proximity to growing Asian markets, our experience doing business in the region and the quality of our resources give us an advantage,” Westacott said.

“But we need concerted policy action to unlock our energy reserves, improve the efficiency of our energy markets and improve climate change policy, and this will involve a careful balance between meeting global demand and providing affordable and reliable energy to households and businesses.

“This balance can only be achieved through honest and respectful community engagement – by being open and clear with people about the choices, and the implications for jobs and standards of living.”

Five key areas are addressed by the report for achieving an effective energy policy balance, include:

• Improving the competitiveness of our energy resource sector by lowering the cost of production;
• Ensuring access to our natural gas resources and improving information and trading in our gas markets;
• Improving the efficient operation of our electricity markets by moving to prices that reflect the cost of delivery to consumers;
• Underpinning Australia’s liquid fuels security by continuing to support access to open and competitive domestic and international markets; and
• Cost effectively managing our greenhouse gas emissions by driving investment in research and development in technology and acting in tandem with the world to reduce emissions at least cost to the economy.

The Australian Pipeline Industry Association has welcomed the submission, highlighting in particular the BCA’s criticism of domestic gas reservation policy and its support for increasing gas production and supply.

The representative body has, however, criticised the submission’s lack of comment on the idea of increased competition aiding supply.

“The BCA has not commented on the important role that increased competition can play in improving supply, as noted in the federal government’s energy green paper. By encouraging more suppliers into the domestic market, the government could also encourage increased gas supply,” APIA CEO Cheryl Cartwright said.

“When the major LNG facilities in Queensland come online, the increased demand will challenge the market on the east coast as gas exports become three times the size of the domestic market.

“Governments should ensure that the development of coal seam gas in New South Wales and Victoria proceeds and encourage major and new explorers and producers to develop enough gas to meet the demands of both the export and domestic markets.

“Australia has plenty of gas – there should be enough production to fill export contracts as well as meet domestic demand.”