Labor’s bill aims to cap gas and electricity bill increases. Source: Flickr
The federal government’s energy relief package is set to go to parliament this Thursday, the 15th of December, in an attempt to curb Australian energy bills over the next 12 months.
The legislation would implement price caps on gas and coal, leading to energy bill relief for Australians. Included is $1.5 billion for bill relief for eligible households and businesses, and a gas price cap of $12 per gigajoule for the next 12 months with states to cap coal prices at $125 per tonne to reduce electricity bills.
While the proposed caps are above current prices, the Treasury predicts the it will lead to the average Australian energy bill saving $230 compared to without the intervention.
Prime Minister Anthony Albanese is confident that the bill will pass. However, it will need the support of the Liberals, or the Greens and one independent in order to pass the senate. Both the Coalition and the Greens have been critical of the proposal and its impact on energy bills.
The Coalition described the plan as a “monster in the making” and would be disastrous for the economy, and the gas and coal industries.
Shadow Energy Minister Ted O’Brien said the solution was increasing gas supply and that’s Labor’s plan would fail.
“The legislation that I read yesterday, while its yet to go through shadow cabinet, yet to go through the partyroom, I think is a disaster,” O’Brien told Sky News.
“It is a monster in the making because not only will it fail in the short term, it is going to have a disastrous affect on the industry over the long term because it kills supply.
New Souths Wales and Queensland coal producers impacted by the caps could receive up to $500 million that is budgeted for compensation. However, the Greens oppose any such compensation for affected energy companies.
“The greedy coal and gas corporations should be compensating people, not the other way around,” Mr Bandt said to reporters.
“The Greens will fight any moves to compensate coal and gas corporations, and push for more support for everyday people instead.”
Bandt says his party have not seen the legislation’s full details yet. As such, they will reach a formal position on the bill at a party room meeting tomorrow. However, he told reporters he believes there should be focus on moving consumers away from gas.
“The Greens want more money to go to households, renters and businesses, including to get off gas, switch to electric appliances and install batteries,” he said.
“People need more support than the government is offering.
“Without a plan to get people off gas, the price pain will start up again as soon as Labor’s temporary cap ends and we’ll be back here in 12 months’ time.”
