The Australian Government has partnered with States and Territories to deliver the Energy Price Relief Plan to address the impacts of price increases due to global energy pressures on families, small businesses and manufacturers.
The Energy Price Relief Plan will:
- take action to limit gas prices
- take action to limit coal prices
- provide targeted energy bill relief for households and business
- invest in cleaner, cheaper, more reliable energy for the future.
At the National Cabinet meeting on 9 December 2022, the Prime Minister and First Ministers agreed to the below.
Temporary cap on the price of gas and other measures
- Tackling high gas prices by the Commonwealth introducing a 12-month emergency gas price cap, to be set at $12 per gigajoule on new wholesale gas sales by east coast producers subject to consultation
- Introducing a mandatory code of conduct for the wholesale gas market that includes a reasonable pricing provision
- Accelerating reform of the Australian Domestic Gas Security Mechanism (AGDSM) to ensure sufficient supply of gas for the domestic market; and
- Boosting resources for the ACCC for implementation, monitoring and enforcement
Temporary cap on the price of coal
The New South Wales and Queensland Governments are taking action by effectively setting ceilings for the price of coal used for electricity generation to $125 a tonne, with the Commonwealth to contribute to costs.
Targeted energy bill assistance
The Commonwealth Government will partner with States and Territories to deliver targeted and temporary relief on power bills to eligible Australian households and small businesses that are customers of electricity retailers. The Commonwealth will establish an Energy Bill Relief Fund with up to $1.5 billion to deliver relief directly to electricity bills. Commonwealth support will be contingent on the relevant State or Territory matching funding on a dollar-for-dollar basis.
It is expected that the final details and funding arrangements will be settled by National Cabinet by March 2023.
Investing for a renewable future
Beyond these immediate measures, the Prime Minister and First Ministers reinforced the commitment made by Energy Ministers at the meeting of 8 December 2022 to implement the Capacity Investment Scheme.
The Scheme will unlock around $10 billion of private and public sector investment in clean, dispatchable storage and generation to ensure reliable and affordable electricity supply and reduce our exposure to high coal and gas prices over the medium and long term.
For more information read the Prime Minister’s media release.