Chapter 4Energy
4.1Energy price rises constitute a significant and growing cost for Australians, and one which many households are unable to reduce. Australian businesses are also feeling the brunt of rising energy costs, with energy accounting for as much as 30 to 40 per cent of input costs for some energy-intensive manufacturers. Business NSW told the Committee that energy costs were the number one source of concern for businesses.
4.2The Commonwealth Government has been acutely aware of the impact that increasing energy prices are having on Australian consumers. Prior to its statements in the 2022–23 October Budget (see below) the then-opposition consistently made a commitment to reduce energy bills for Australians by $275.
4.3Among the more than 90-times he referred to the commitment prior to the 2022 election, then-opposition Leader, the Hon Anthony Albanese MP, said, '[i]t will see electricity prices fall from the current level by $275 for households by 2025.'
4.4However, evidence presented to the committee confirmed that this has not taken place. Not only has there been no reduction by $275, but energy bills have actually continued to increase. Mr Ben Barnes, then-Acting-CEO of the Australian Energy Council, told the committee:
Our indications are that we'll see price increases this year, and the way the pricing methodologies that the AER and others use in setting the retail price will see it drag on for a couple of years at least. I think the government's commitment related to more renewable energy coming into the system, and the effect of that is yet to be seen, but certainly in the short term, for the next couple of years, we will not see price reductions in this market.
4.5Similarly, Mr Luke Yeaman, Deputy Secretary in the Department of the Treasury, told the committee that the Treasury had forecasted that energy prices in the 2023–24 financial year would rise by 23 per cent even taking into account the new measures implemented by the Government following the 2022–23 October Budget.
4.6This chapter explores the complex energy system and market, and their regulation. It also details how and why energy prices have increased recently, and outlines the Government's recent market interventions. Finally, this chapter outlines some of the solutions to energy-related cost of living pressures proposed by witnesses and submitters.
Australia's energy system
4.7Australia's energy generation comprises coal (which represents 53 per cent of power generated annually, including both black and brown coal), renewables (27 per cent), natural gas (19 per cent), and oil (2 per cent).
4.8In 2019–20, the largest consumers of energy in Australia were electricity suppliers (26 per cent), transport (27 per cent), manufacturing (17 per cent), and mining (14 per cent).
Energy markets
4.9Due to geography and the distance between population centres, Australia does not have a single electricity grid. Energy policy is shared between states and territories and the Federal Government, which is responsible for regulators like the Australian Energy Regulator (AER) and the Australian Competition and Consumer Commission (ACCC).
4.10The National Energy Market (NEM) is the backbone through which energy is generated, traded, and transported across Australia's eastern and south-eastern states to end-users: industry, homes, and businesses. Prices on the NEM are determined by offers from generators to supply electricity at specific volumes and times, and by demand for electricity by end-users and retailers. Prices on the NEM therefore change in response to supply and demand fluctuations.
4.11Two-thirds (67 per cent) of electricity traded on the NEM in 2021–22 was derived from thermal generation (coal, natural gas, and liquid fuel), with the remaining third (33 per cent) derived from renewables (wind, solar, hydro, and biomass).
4.12Whilst more retailers have entered the NEM in recent years, the sector remains highly centralised. AGL Energy, EnergyAustralia, and Origin Energy (collectively known as the 'big 3') served nearly two-thirds of all east coast customers at the start of 2022. The AER reported that the retail energy market was likely to have seen further centralisation throughout the year as some retailers exited the market and others consolidated amid increases in wholesale energy costs.
4.13Western Australia (WA) and the Northern Territory (NT) are not connected to the NEM. The electricity markets in the NT and WA are managed, respectively, by the NT Electricity System and Market Operator (NTESMO) and the Wholesale Electricity Market (WEM). More than two-thirds (68 per cent) of electricity traded on the WEM in 2021–22 was derived from thermal generation, with the remaining third (32 per cent) derived from renewables.
Drivers of energy price rises
4.14Electricity prices spiked in 2022 (see figure 4.1, below). In the first quarter of 2022, the wholesale electricity price (spot price) in the NEM was 141 per cent above that of the previous year. By mid-2022, prices were approaching five-times higher than they had been at the beginning of the year.
4.15In June 2022, the Australian Energy Market Operator (AEMO) imposed price caps on the NEM for some states amid surging prices and projected energy shortfalls. On 15 June 2022, the AEMO suspended trading on the NEM for tendays.
4.16The AEMO attributed record high energy prices throughout 2022 to high global prices for fossil fuels, outages at coal-fired power plants, supply issues, and the cold winter driving up demand.
Figure 4.1Wholesale Electricity Prices: NEM, population-weighted average
Source: Reserve Bank of Australia, Statement on Monetary Policy, August 2022, p. 53.
4.17The October 2022 budget described conditions in the energy markets, as follows:
Global oil, gas and coal prices have risen sharply following the Russian invasion of Ukraine, driving up energy costs across advanced economies. This resulted in sharply higher petrol prices in Australia earlier this year.
…Domestically, wholesale electricity and gas prices have also risen sharply since early 2022, reflecting higher global prices as well as temporary domestic electricity market disruptions exacerbated by ageing generation assets and inadequate policy certainty to support investment in new energy infrastructure.
4.18The budget forecast that electricity prices would continue to increase by more than 50 per cent through to the end of the 2023–24 financial year.
4.19Mr Barnes told the committee that, aside from the international pressures that had driven up energy prices during 2022, there would be ongoing price pressures on the energy market as it transitions to renewable sources that require new investments.
4.20Mr Mark Samter, Senior Research Analyst at MST Marquee, told the committee that he thought it unrealistic to reduce the cost of gas, other than through subsidies for consumers.
4.21The committee received evidence on the industry's response to financial hardship faced by its customers. The AEC told the committee that its members were 'acutely aware of the challenges caused by rising prices' and that 'stringent requirements' were in place to ensure effective and meaningful support was on offer to customers in difficulty. Mr Barnes said in February 2023 that there were around 75000 to 85000 households on hardship programs—a 10000 increase on the previous year. He also noted that prices paid by customers were regulated and set by an independent regulator to keep them at an efficient level.
4.22Ms Clare Savage, Chair of the AER, told the committee that there had been a 12per cent increase in the number of energy customers on hardship programs, but noted this could be the result of retailers doing a better job of identifying customer early rather than indicative of a greater number of customers in hardship. Around 2.5 per cent of all energy customers were in arrears by at least 90 days, with the average debt being around $1000. A quarter of customers in hardship programs had debts of $2500, claimed Ms Savage.
4.23Anglicare Australia submitted that, even with hardship programs in place, many low-income households still struggle to reduce their energy debt.
4.24The Consumer Action Law Centre (CALC) submitted that households generally prioritise paying electricity costs, describing increases in the numbers of people facing difficulties paying their electricity bills as the 'canary in the coal mine' that indicates broader financial struggles. CALC said, '[c]allers with energy issues were often also struggling with housing arears and their day-to-day living expenses, with many using credit and products such as [buy now pay later] to keep up'.
Energy market regulation
4.25Both the NEM and WEM are managed by AEMO, which is mandated to ensure access to affordable, secure, and reliable energy.
4.26Outside Western Australia, wholesale electricity and gas markets and networks are regulated by the AER, which is responsible to the ACCC. The AER also regulates retail energy markets in the Australian Capital Territory, South Australia, New South Wales, and Queensland.
4.27The Australian Energy Market Commission (AEMC) sets the rules and provides advice to government in relation to the national electricity and gas markets.
4.28The Energy Security Board provides oversight for the energy system to ensure security and reliability, and is comprised of the heads of the AEMO, the AER, and the AEMC.
4.29The Energy National Cabinet Reform Committee is a forum for the Commonwealth, states, territories, and New Zealand to work together on priorities and reforms in the energy sector. It is a subcommittee of NationalCabinet, replacing the Council of Australian Governments Energy Council.
Price fluctuations for key domestic fuel sources
Coal
4.30Australia is the world's largest exporter of coal, exporting more than $40 billion of the commodity annually. Coal is also used for domestic electricity production, forming the bulk of electricity generation and supply in Australia. AEMO's January 2023 Quarterly Energy Dynamics Report noted that black and brown coal combined made up around 45 per cent of the NEM supply mix, compared with a total of 40 per cent for hydro, wind, grid solar, and distributed photovoltaics (i.e. all other non-grid solar).
4.31Currently, AEMO's 30-year electricity market roadmap forecasts 60 per cent of current coal generation exiting by 2030. Power plants responsible for two-thirds (67 per cent) of the current coal-generation capacity are scheduled to be withdrawn from the market by 2035. However, there remains a significant gap between the expected demand for energy over this time and beyond, and the new sources of power entering the market. The CEO of AEMO, Mr DanielWesterman, said in February 2023:
…reliability gaps begin to emerge against the Interim Reliability Measure from 2025 onwards. These gaps widen until all mainland states in the NEM are forecast to breach the reliability standard from 2027 onwards.
4.32Global thermal coal prices quadrupled in 18 months from March 2021. Domestic coal prices also spiked in 2022–23 amid a global surge in demand for coal, increasing transportation and generation costs associated with coal, supply disruptions resulting from outages at coal-fired plants, and extreme weather events.
4.33The Reserve Bank noted that domestic generators had become heavily reliant on spot markets to supply coal for domestic electricity generation, driving up electricity prices further. The Bank expects coal price spikes to drive inflation further in 2023.
Gas
4.34The main domestic uses of natural gas within Australia are electricity generation (36 per cent), mining (25 per cent), manufacturing (23 per cent), and households (11 per cent).
4.35Natural gas is also cooled to liquid form (LNG) to reduce its volume for export. In 2023, Australia is expected to produce 1981 petajoules (PJ) of natural gas; two-thirds (65.6 per cent) of which is expected to be exported overseas under existing long-term contracts, making Australia the world's biggest exporter of LNG.
4.36Domestic gas prices prior to 2015 ranged from around $3 to $5 per gigajoule(GJ). In mid-2020, during the pandemic, prices dropped as low as $2.29 per GJ. In early 2021, gas prices rose to $41.24. Following the invasion of Ukraine by Russia in February 2022, prices rose to $66.99 per GJ. Analysts expect gas prices to remain elevated throughout much of 2023 unless there is an end to the war in Ukraine.
4.37The Reserve Bank of Australia noted in 2021 that gas generation costs had become highly correlated with changes in electricity prices; meaning increased gas prices have a broader impact on domestic electricity costs.
4.38A report by the ACCC in mid-2022 cautioned that, amid the declining allocation of gas to the domestic market, in which LNG exporters are net withdrawers of gas from the domestic market:
[The] closure of operations [for some manufacturers reliant on gas] was becoming a very real possibility in the short term and more significant demand destruction was likely over the longer term.
4.39CEO of the Australian Petroleum Production and Exploration Association (APPEA), Ms Samantha McCulloch, noted that while much of Australia's gas was exported, the gas supplying the east coast gas market would not have been produced without long-term international supply agreements. She stated:
…increasing volatility of Australia's demand profile alongside barriers to new investment in new supply are major contributors to make higher domestic prices. New gas supply is the key to putting sustained downward pressure on prices.
4.40The Minerals Council of Australia similarly noted:
There is growing demand for gas to provide the firming capacity needed to stabilise electricity networks as they transition away from coal-fired generation to increased renewable energy and storage. Policy settings that impede investment in the supply of gas when there is growing demand for it from major users seeking to reduce emissions will maintain upward pressure on the price of gas.
4.41The recent spike in the price of Australian gas has been widely attributed to Western sanctions imposed on Russia following its invasion of Ukraine. Overseas demand for LNG intensified throughout 2022, driving up both global and domestic gas prices, as large European users of natural gas sought to reduce their dependence on Russian supplies. Ms McCulloch described the Russian invasion of Ukraine as compounding the 'underlying trend of price increases', attributing steady long-term price increases to underinvestment in new gas supplies and demand volatility.
4.42While Mr David Lawrence from the Department of Industry, Science and Resources, told the committee that government consultations with industry suggested companies were 'still keen to invest', this does not accord with other evidence received by the committee. Ms McCulloch noted that policy interventions by the Federal Government (see below) were already resulting in investment decisions being delayed: 'we've already seen a number of projects—to use an example, the Senex Atlas project, which is a $1 billion project that plans to supply the domestic market—be put on hold because of the uncertainty associated with these interventions'.
4.43Mr Samter told the committee:
…as a market observer I would expect every single producer with potential new growth projects to freeze investment. I think it's, fundamentally, close to impossible for either buyer or sellers to sanction a new project, because you don't know the grounds you're acting within.
4.44Mr Arron Wood, Executive General Manager at the Clean Energy Council, attributed high energy prices throughout the second half of 2022 to the high costs of operating coal and gas generators. However, concerns relating to operating costs were not raised by representatives from the gas industry, who instead submitted that international gas prices were rising before the Russian invasion of Ukraine due to a lack of investment in new supply.
4.45Mr Rick Wilkinson, Head of Consulting at EnergyQuest, told the committee that, whilst the effects of the war in Ukraine on LNG prices had been a factor, they were not the primary reasons for the dramatic rise in east coast gas and energy prices. Mr Wilkinson said price rises in early 2022 were in-line with longer-term trends and that in mid-2022, when domestic gas prices were towards their peak, LNG exports were at their lowest levels since at least January 2020. Mr Wilkinson attributed energy price rises in 2022 to generator outages and the failure of renewables to provide firming capacity, when needed.
4.46Mr Mark Samter gave evidence to the committee that the war in Ukraine was not determinant of Australian domestic energy prices: 'I think it would be generous to give it one per cent' of the blame for high domestic energy prices during 2022. He claimed 99 per cent had been caused by other factors. MrWilkinson cautioned that the effects of the war in Ukraine would 'filter through' to domestic energy prices through the investor perspectives.
4.47In contrast, Mr Simon Duggan from the Department of Climate Change, Energy, the Environment and Water insisted that the war in Ukraine 'has had a very significant impact, both internationally and domestically, on energy prices'.
4.48An inquiry into domestic gas supply by the ACCC in July 2022 (part of the regulator's 6-montly reporting on the industry) found that '[t]here is a significant risk to the east coast's energy security in 2023 with a projected shortfall in supply of 56 PJ'—about 10 per cent of annual domestic demand.
4.49The ACCC attributed some of the pricing and supply issues around gas to a lack of competition in the sector. The ACCC's July 2022 report found that three companies have influence over close to 90 per cent of Australia's eastern gas reserves: Santos Ltd (Santos); Australia Pacific LNG (APLNG), a joint venture between Origin Energy, United States-based ConocoPhilips, and China Petroleum & Chemical Corporation, Sinopec; and QGC (formerly Queensland Gas Company), owned by British multinational, Royal Dutch Shell plc. The ACCC warned that this market concentration 'may increase the risk of coordinated conduct and increase the market power of the LNG exporters'.
4.50The ACCC report concluded:
Recent events across the east coast’s gas and electricity markets have shown the consequences of having insufficient gas supply to meet demand and ineffective upstream competition. Concerningly, supply conditions in the east coast gas market are expected to deteriorate further in 2023, with a significant supply shortfall now expected. This is expected to occur against the backdrop of a highly concentrated upstream market, with competition posing little constraint on the behaviour of producers.
4.51While it is clear that additional diversified investment would assist in alleviating the concentration of suppliers in the market, it is unclear whether this would be forthcoming in the current febrile regulatory environment based on the evidence the committee has received.
Renewables
4.52A 2021–22 report by the Commonwealth Scientific and Industrial Research Organisation and the AEMO found that renewables were the cheapest new sources of electricity-generation in Australia, even when including additional costs associated with storage and transmission. The report predicted that the cost of electricity generation from renewables relative to the cost of fossil-fuel sources would continue to fall through the projected period to 2050.
4.53Mr Wood gave evidence that wind and solar were the cheapest source of electricity generation and storage in Australia, even considering additional integration costs.
4.54Mr Duggan said renewable sources of electricity were the cheapest form of energy in Australia. He noted that wholesale electricity prices would face downward pressure as the proportion of low-cost renewable energy in the system increases. Mr Duggan also stated that current and prospective investments in renewable energy were currently seeing a 'very significant increase'.
4.55However, the Governor of the Reserve Bank of Australia, Dr Philip Lowe, warned that the transition to renewables was likely to contribute to higher and more volatile energy prices in the years ahead.
Energy market intervention
4.56In August 2022, the Government announced that it would extend the Australian Domestic Gas Security Mechanism to 2030, renegotiate the Heads of Agreement, and would consider introducing price controls into the gas trigger (see Box 4.1, below).
The Australian Domestic Gas Security Mechanism is an export control mechanism (or 'gas trigger'), established in 2017, through which the Resources Minister may require companies to limit exports or find new supplies. It does not impose price controls. The Heads of Agreement is an agreement with LNG exporters under the ADGSM to make excess gas (that is, gas that has not already been contracted for export) available first to the domestic market at demonstrably competitive prices. |
4.57On 8 November 2022, Treasury Secretary, Dr Steven Kennedy PSM, told the Senate Economics Legislation Committee that recent war-driven price shocks 'bring into scope government intervention' in the gas and coal energy market. Dr Kennedy also noted that rises in gas and coal prices 'are leading to unusually high prices and profits' that are 'well beyond the usual bounds of investment and profit cycles'. He further stated:
The same price increases are leading to a reduction in the real incomes of many people, with the most severely affected being lower income working households. The energy price increases are also significantly reducing the profits of many businesses and raising questions about their viability.
4.58On 8 December 2022, federal and state energy ministers agreed, in principle, to a national Capacity Investment Scheme (CIS). The stated aims of the CIS is to, 'help reduce investment uncertainty and supress market volatility throughout the transition [to zero-emissions dispatchable electricity generation and storage] and result in lower prices in the medium to long term'. The scheme would be available in all jurisdictions, would be limited to zero-emissions technologies, and would underwrite the costs of companies to ensure a reliable supply of firming power. The CIS is due to become operational in the second half of 2023.
4.59On 9 December 2022, the Federal Government announced that it had reached agreement with Queensland and New South Wales to impose a temporary price cap of $125 per tonne of coal used for electricity generation. The New South Wales Parliament passed legislation empowering the state government to impose a price cap on coal and provide compensation for effected suppliers and producers. The Federal Government also announced that it would implement a mandatory code of conduct to 'ensure reasonable pricing' of domestic gas contracts.
4.60On 15 December 2022, the Parliament was recalled out of its usual session to pass the Treasury Laws Amendment (Energy Price Relief Plan) Bill 2022 that:
enables the minister to impose a 12-month 'emergency price order' on uncontracted gas sales in the east coast market (around 10 to 15 per cent of gas produced for the domestic market);
introduced a mandatory code of conduct for the wholesale gas market that imposed a 'reasonable pricing framework' (reflecting the price of production and a reasonable return) as the basis for negotiating wholesale gas contracts, among other provisions; and
provided $1.5 billion in subsidies for energy bills for eligible households and small businesses.
4.61An initial cap of $12 per gigajoule was imposed on uncontracted gas, based on the costs of production and a 'reasonable return' on investment, as recommended by the ACCC. The price cap is due to be reviewed in mid-2023.
4.62The Government estimated that these measures would prevent a $230 increase in electricity prices for the average Australian household.
4.63Ms Savage told the committee that she expected the Government's intervention in the electricity market 'to reduce, to some extent, the magnitude of the price rises facing consumers', although she did not echo the Government's figure of $230.
4.64On 17 January 2022, the ACCC issued interim compliance and enforcement guidelines on the Gas Market Emergency Price Order.
4.65APPEA told the committee that the interventions had brought 'enormous uncertainty' to the market, reducing investment in supply and exacerbating, not easing, energy price increases. APPEA claimed that the interventions were 'far-reaching', had been implemented with limited consultation, and stated that they had 'effectively dismantled' typical operation of the gas market in Australia.
4.66APPEA went on to tell the committee that the gas market interventions had brought significant uncertainty to the market and 'are chilling investment in domestic supply' at a time when greater investment in the sector is needed. Separately, APPEA stated that amendments made to the Safeguard Mechanism 'ignore the central role of natural gas in meeting Australia's climate goals, undermines Australia's energy security and will result in higher gas prices for Australians'.
4.67The Australian Chamber of Commerce and Industry (ACCI) noted the interventions—particularly the requirement that new projects be effectively 'net zero'—had 'effectively halted new gas exploration and development into the future'. ACCI warned of the impact of the interventions on investor confidence, predicting that gas supplies would become increasingly limited, and gas production costs were likely to increase as a result of the Government interventions, leading to higher residential and commercial energy bills. It stated that the intervention 'has effectively halted new gas exploration and development into the future'.
4.68Mr Wilkinson warned of the risks of energy market interventions:
…every time you change the rules, you increase the risk requirement or the risk premium that investors need in order to do business in Australia, so investors hate sudden and unexpected changes… Money goes anywhere around the world, so we are competing with the US and we are competing against Asian oil and gas resources and those in the Middle East.
Evidence on potential solutions
4.69The committee heard evidence on four broad sets of possible solutions to energy-related cost of living pressures:
increasing the domestic supply of gas;
facilitating the transition to renewable energy sources;
improving energy efficiency; and
increasing social transfers to off-set or reduce energy costs.
4.70Each is discussed in the following section.
Increasing gas supplies
4.71Witnesses emphasised the need to increase the supply of gas to bring down energy prices through direct investment or policies that would encourage private investments.
4.72Ms McCulloch told the committee that new gas supplies are central to reducing prices. APPEA argued that '[t]he only effective and enduring mechanism for reducing the price of gas while continuing to meet demand is to increase the supply of gas in the market'. APPEA also recommended that the Government reduce regulatory and investment barriers to facilitate efficient market operations and encourage investment in the sector.
4.73Mr Wilkinson called for support for LNG import terminals and increased investment in domestic gas supply infrastructure to increase domestic gas supplies in advance of the transition to renewable energy sources.
Fast-tracking the transition to renewables
4.74The committee also heard evidence that fast-tracking the transition to renewable energy would bring down energy prices.
4.75Mr Wood, called for the shift to renewables to be accelerated, telling the committee:
…renewable energy and energy storage is really key to putting downward pressure on wholesale electricity costs, contributing to cost-of-living relief and ensuring that we shift away from what has been, in recent times, unreliable coal and very expensive gas.
4.76Mr Buckley described a 'once-in-a-century opportunity for Australia to invest in industries of the future'. He told the committee, '[i]t's very much time we protect Australia and build Australian industries to do refining onshore, and seize that huge investment, employment and export opportunity'.
4.77Mr Matt Grudnoff from The Australia Institute emphasised the need for sovereign resilience in energy, noting that, 'if we do invest more in renewable energy then the next crisis that comes along…won't affect us as much'.
4.78Mr David Stuart from BP Australia told the committee that he expected much of the volatility in the energy market to ease as the grid transitions to renewable sources.
4.79In contrast, Mr Wilkinson partly attributed energy price fluctuations during 2022 to the energy transition, calling for efforts to 'smooth the transition to net zero carbon'.
Improving household energy efficiency
4.80The third area proposed to the committee to reduce energy-related cost of living pressures consisted of efforts to improve energy efficiency and reduce energy use.
4.81Mr Barnes noted that energy prices could be reduced without reducing prices by supporting customers to reduce their energy consumption or encouraging customers to use energy at a time of the day when prices are lower.
4.82Mr Luke Menzel, Chief Executive Officer of the Energy Efficiency Council, told the committee that improving energy efficiency was 'one of the least costly opportunities we have to lower energy bills and also lower carbon emissions'. Mr Menzel noted that Australia's housing stock was 'of a very poor quality', making households particularly reliant on energy.
4.83Mr Menzel called for energy efficiency to be addressed alongside the transition to renewables: 'by leveraging energy efficiency, alongside renewables, we have the opportunity to lower energy bills, lower healthcare costs and dramatically improve Australian lives'.
4.84Mr Menzel also proposed a role for banks in providing preferential finance to support energy efficiency schemes.
4.85See also Chapter 5 for more on addressing energy costs in rental properties.
Increasing energy-related social transfers and improving hardship supports
4.86The final set of proposed solutions to energy-related cost of living pressures were to increase income support payments. Anglicare Australia recommended that the Government offer emergency payments to help pay down energy debts.
4.87Ms Savage noted that some vulnerable customers may be unaware of the support already available to them. She therefore recommended that more be done to raise awareness of existing programs.
4.88The Business Council of Australia cautioned that fiscal interventions risked adding to, rather than reducing, inflationary pressures, but noted:
Relief in the form of narrowly targeted measures are less likely to add fuel to the inflationary fire—including existing measures to alleviate energy costs and childcare costs, and preserve the real value of government social payments.
4.89See Chapter 3 for evidence on the adequacy of income support payments.
Government policy response: Energy accord
4.90On 9 December 2022, the Federal Government announced that it had reached agreement with Queensland and New South Wales to impose a temporary price cap of $125 per tonne of coal used for electricity generation. On 15 December 2022, the Parliament passed the Treasury Laws Amendment (Energy Price Relief Plan) Bill 2022 that would impose an 'emergency price order' of $12 per gj of uncontracted gas.
4.91The Government also announced on 9 December 2022 that the Commonwealth would partner with states and territories to deliver relief on power bills to eligible Australians, including households receiving income support, pensioners and Commonwealth Seniors Health Card holders, Family Tax Benefit A and B recipients, and small businesses customers of energy retails. However, at the time of this Interim Report this relief has not been delivered.
Interim committee findings
Finding 6: Energy prices have risen and are a major contributing factor to the cost of living crisis in all sectors of the economy. Finding 7: More supply of energy will reduce the cost of energy. |