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‘We appreciate the challenges’: Treasurer Jim Chalmers stands by government’s energy market intervention amid concerns #challenges #Treasurer #Jim #Chalmers #stands #governments #energy #market #intervention #concerns #englishheadline


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Treasurer Jim Chalmers has defended the government’s price cap on gas amid fresh calls to scrap the measure.

Parliament was recalled in December to pass the legislation which capped gas at $12/gigajoule for a year in a bid to bring soaring household power bills down.

However east coast energy retailers have raised concerns about supply with some even turning away would-be customers or charging higher prices.

Mr Chalmers noted the Australian Competition and Consumer Commission (ACCC) will police the producers to ensure they act in accordance with the Australian Domestic Gas Security Mechanism.

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“We appreciate the challenges some companies have faced to negotiate new gas agreements over the Christmas holidays,” he told reporters on Monday.

“We expect the gas producers to act promptly to implement the price cap, the temporary price cap.

“And the ACCC is closely monitoring the behaviour of the gas producers to make sure that they’re consistent with their obligations under that temporary price cap and under the ADGSM as well.”

The Coalition attacked the government over the energy market intervention on Monday following the supply concerns from the retailers.

Liberal MP Dan Tehan demanded the Albanese government scrap the price cap in a bid to get more gas back into the market.

“We know the issue is supply. That is the one thing that will drive prices down,” he told Englishheadline Australia.

“They’ve got to reverse those policies which were designed at limiting supply and they’ve got to be doing everything they can, working with the states and territories, to get more gas onto the market.

“That is the only way this will be fixed.”

Nationals leader David Littleproud said the move by Labor will chip into the nation’s gas reserves.

“What this Labor government has forgotten is the long-standing economic principle of demand and supply,” he said.

“To meet demand you have to increase supply and if you’re not going to do it yourself as a government you need business to do it. If you don’t increase supply prices are going to go up.

Gas price cap should be scrapped ‘immediately’

“And the other piece that Australians need to understand is if we don’t continue to increase our supply in Australia we are actually chewing into our reserves.

“So that means supply goes down for our domestic use every year.”

The Treasurer said the price cap will put downward pressure on the forecasted price increase, which will have flow on effects.

“Under the Heads of Agreement those gas companies have committed to offering an extra 157 petajoules of supply to the east coast market in 2023,” he said.

“That’s almost three times the forecast shortfall and the gas price cap is expected to put downward pressure on the forecast price increases as these changes flow through to retail supply contracts, reducing those average price increases over time.”

English Headline

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