National cabinet agrees to provide energy price relief

The Prime Minister has announced a breakthrough agreement with the states to intervene to cap the booming price of coal and gas.

Federal Parliament will be recalled to pass legislation for a code of conduct for a period of 12 months capping gas prices at $12 a gigajoule.

The code will be compulsory.

Speaking at a press conference a few minutes ago Albanese said: “I’m pleased to announce that there was agreement at the National Cabinet on a way forward to provide the energy price relief for households and for businesses.

“Extraordinary times call for extraordinary measures.

“And we know with the Russian invasion of Ukraine, what we’ve seen is a massive increase in global energy prices.”

Other elements of the unprecedented energy price controls announced include making available $1.5 billion to support household consumer and business energy bills.

And Canberra will continue to engage with NSW and Queensland to cap coal prices at $125 per tonne.

Albanese said governments were determined to provide some relief to businesses and consumers.

“And to take what are extraordinary measures to deal with these extraordinary times.”

On Thursday federal and state governments decided on an energy ‘capacity mechanism’ which will pay renewable energy producers to boost electricity supply at a moment’s notice.

Albanese described this move as the fourth element of the government’s plans.

Picture: Anthony Albanese