Plans to cap the price of gas and coal to bring down energy prices will pass parliament, after the Greens announced they will support the bill.
Greens leader Adam Bandt said the party would back plans for gas to be capped at $12 a gigajoule and coal at $125 a tonne.
The proposed laws would also set up mandatory “gas market codes” to regulate the supply and purchase of gas.
Parliament will be recalled on Thursday in order to pass the laws.
Mr Bandt said the party would still oppose measures to provide compensation to coal and gas companies for the price caps.
“Energy corporations for too long have been punishing people in this country and power bills are going through the roof,” he told reporters in Melbourne.
Following negotiations with the government, Labor will develop measures for the upcoming budget to help households and businesses switch from gas to electricity.
The plan will be developed as part of the National Energy Performance Strategy, with advice also taken from organisations such as the CSIRO.
Low-income households, renters, as well as public housing residents are expected to be the focus of the electrification plans.
Mr Bandt said the measures would help people to save money from rising energy costs.
“The Greens have secured a significant package that will help meet the costs households and businesses to switch over from dirty and expensive gas to cleaner and cheaper appliances and that could save households hundreds of not thousands of dollars,” he said.
“These will be savings that last for a lifetime.”
ACT independent senator David Pocock said he would support the government’s legislation in the upper house, but the measures needed to go further.
“I have made it clear to the government that this bill while, importantly, will provide some relief to households and small businesses, doesn’t go far enough,” he told reporters in Canberra.
“While I will be supporting this package, I want to see a lot more in the way of electrification.”
However, Opposition Leader Peter Dutton has labelled the return of parliament to debate energy relief measures as just a stunt.
Mr Dutton said the coalition would support financial relief measures for energy bills but indicated efforts by the government to legislate the price caps were designed to cause political division.
“The prime minister is looking for a political wedge because we’ve been clear about our support of the money going to families who are suffering under this government with increased energy costs, particularly electricity and gas,” he told reporters in Brisbane on Wednesday.
“Australians are not stupid. They see through these stunts. We want to see support for families and reduction in energy prices.”
Mr Bandt has called for the government to put in place a freeze on power bills for two years.
While parliament is looking at short-term solutions to the energy crisis, Resources Minister Madeleine King said a national gas reserve could also be considered as a longer-term option.
“Given the extraordinary state of the market at the moment, we have to look at all options,” she told ABC Radio on Wednesday.
“It’s certainly something we can look into. It is complicated to retrofit a reservation policy after we’ve had an LNG export industry in place for a number of years but that doesn’t mean it’s impossible.”
© AAP 2022
