An energy crisis is rapidly unfolding in the Australian electricity and gas sectors that will rival the oil shock of the 1970s. That shock to our energy-intensive economy originated in global changes in the energy industry. The great energy crisis of 2015 will not be caused by an external shock but, rather, it is a uniquely domestic problem caused by dramatic energy policy failure.

Energy in Australia is rapidly becoming unaffordable for industry and domestic consumers. In a country that is one of the world's largest exporters of energy, with abundant cheap coal and gas, it is lamentable that we face high domestic prices.

Power bill increases are due to gold-plating of the system and international pricing. Credit:Michael Mucci

We have seen a doubling of electricity bills over the past six years. Rising network costs caused the lion's share of the increases. Wholesale gas prices will see an even larger rise over the coming two years as the industry moves to world parity pricing.

Industry groups and business leaders have not been shy of commenting on the dire consequences of high energy costs for their businesses. Industry after industry has felt the effects: some have downsized and many have closed.