Australians are being told to expect stronger federal action to try to cut the cost of electricity and gas in a pledge from Prime Minister Anthony Albanese to toughen energy rules after the budget forecast a 56 per cent spike in power bills.
Treasurer Jim Chalmers has fended off calls for cash payments to households such as the energy rebates underway in the United Kingdom but said tougher regulation was being considered. The budget included further support for the Australian Energy Regulator and the Australian Competition and Consumer Commission but the decisions to act on prices – such as price caps – would need federal cabinet support and coordination with state governments.
Business Council of Australia chief Jennifer Westacott said the government needed to encourage more investment in the electricity grid but highlighted the importance of the capacity mechanism that can put a priority on reliable power supply from coal and gas power plants. “Encourage companies to invest in transmission, we’ve got to get some kind of what they call a capacity mechanism in place. Which was all about reliability and affordability.
“It’s really important to see the super profits tax considered and think of how that can be used to provide some relief,” O’Neil said.