Albanese ponders price cap to ease gas crisis
Prime Minister Anthony Albanese admits Australians need relief on soaring energy prices and says a price cap on gas is one option on the table as his government seeks solutions.
Speaking on Friday morning, Albanese dismissed speculation about a super profits tax on gas and thermal coal and doubled down on renewables as the nationās long-term path to cheaper energy prices and lower carbon emissions.
Asked if the government would introduce a gas price cap, the prime minister said it was under consideration.
He dismissed reports the government would implement a āmining taxā, labelling it āa sloganā, but admitted taxing gas and thermal would form part of discussions about āsensible measuresā that could relieve Australian households.
āAll sensible measures remain on the table. Weāre working these things through including talking with industry themselves,ā he told Sydney radio 2GB.
āBut we need to provide relief ā¦ you have extraordinary profits being made at the same time as households and businesses, particularly manufacturing, are under pressure.ā
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Albanese reiterated Australiaās commitment to renewable energy and dismissed suggestions it wouldnāt be the cheapest path forward, saying āevery economist in Australiaā agreed with that sentiment.
āThere has been nothing to stop investment (in coal and gas). The market has spoken,ā he said.
āYou have a shortfall in the market as a direct result of the failure of the former government, which is why the business community is saying very, very clearly across the board ā¦ they all welcome the new government policy on these issues, which is aimed at providing that investment certainty.ā
Mining Council of Australia chief executive Tania Constable said any proposed tax on the coal and gas industry would be āperverseā.
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āItās a very short-term fix, not sensible to put at risk our investment in Australia, our jobs in Australia and what industries are doing with communities,ā she told Sky News.
āItās not sensible for the government to put another big tax on an industry thatās been holding up the economy for quite some time.ā
Ā
Octoberās budget revealed Treasury expects electricity bills to soar by a combined 50 per cent in the next two financial years.
Senior Treasury officials told Senate estimates this week they backed government intervention in energy markets to try to bring prices down.
The Australian Competition and Consumer Commission has said it is not investigating a super profits tax on gas companies.
The governmentās energy price plan is expected to be released by the end of the year.
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