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Malcolm Turnbull speaks to the energy and environment minister, Josh Frydenberg, The gas companies I have no doubt are very well aware they operate with the benefit of a social licence from the Australian people. Frydenberg said prices had increased due to increased export of liquid natural gas, less investment in exploration due to low oil prices, and gas moratoria in several states. But the increases had not been sufficient to incentivise development of reserves, which Frydenberg said amounted to 180 years supply in the Northern Territory and 40 in Victoria. South Australias $550m energy plan Asked about potential shortages next summer, Frydenberg noted the companies had existing supplies that they could release into the domestic market in the meantime. Frydenberg said gas reservation is a double-edged sword that could increase supplies in the short term but decrease incentives to invest in exploration and extraction. Asked if he supported a gas reservation policy, Frydenberg said he was not backing the idea because the government wants industry to lead. The comments suggests that Turnbull, who has so far not ruled out a gas reservation policy , is wielding the possibility as a threat to force gas companies to take action without further regulation. Frydenberg said he was very concerned about South Australias plan to give its energy minister powers to direct the Australian Energy Market Operator (AEMO) to control flow on the South Australias interconnector. The federal minister is seeking advice about whether that plank of the policy is in breach of market rules . He said the national energy market rules do need to be reformed and the government was working with the Australian Energy Market Commission on changes, like setting prices on a five-minute, not 30-minute, period which would encourage more battery storage.

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