Anthony Albanese unveils national cabinet plan to cut power prices by capping the price of coal and gas – as he recalls Parliament
- Coal prices will be capped at $125 a tonne after a national cabinet agreement
- Anthony Albanese announced the measure during a press conference on Friday
- The Prime Minister will recall Parliament to pass legislation over energy prices
National cabinet has agreed to provide power price relief for households and businesses by imposing caps on coal and gas prices as well as cash support.
Gas prices will be capped to $12 a gigajoule for 12 months, while coal will be temporarily capped at $125 a tonne, following an agreement on Friday between Prime Minister Anthony Albanese and state and territory leaders at a virtual national cabinet.
A mandatory code of conduct will be put in place for the gas industry, with federal parliament to be recalled next week to pass the legislation.
Anthony Albanese announced national cabinet’s plan to provide power price relief for households on Friday evening
A further $1.5 billion will be provided in energy bill relief for support to household businesses, which will be paid through state governments.
Treasurers are set to work through a relief package for each state and territory.
Prime Minister Anthony Albanese said extraordinary measures would be taken to lower the cost of energy.
“We’re taking urgent action to shield Australian families from the worst impacts of these price hikes,” he said.
“We’re working hand in hand with our state and territory partners to find the best outcomes for all Australians.”
The federal budget forecast a 56 per cent increase in electricity prices and a 44 per cent rise in gas prices for households in the next two years.
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