Australians struggling to make ends meet are holding their breath as they wait for state and federal politicians to announce a plan to tackle surging power prices.
But any monetary help for soaring bills will not be an inflation-baiting handout, the Energy Minister says.
Prime Minister Anthony Albanese – still in self-imposed isolation with Covid-19 – will convene a virtual meeting of national cabinet on Friday afternoon to tackle the energy crisis.
It follows a meeting between Energy Minister Chris Bowen and his state and territory counterparts on Thursday to discuss ideas to tackle the forecast 56 per cent increase in electricity prices and 44 per cent rise in gas prices for households over the next two years.
One part of the plan to be discussed at national cabinet will be the imposition of price caps on coal in Queensland and NSW, but whether Queensland Premier Annastacia Palaszczuk will agree is dependent on federal compensation for her state.
NSW Energy Minister Matt Kean said the state government would not be seeking compensation for lost revenues but said families and businesses needed to be compensated.
Reports have also emerged the federal government will consider rebates, which could be worth up to $280 in NSW.
Mr Bowen said the federal government wouldn’t be doing anything that would further fuel inflation.
“Australians didn’t decide to invade Ukraine, Australians didn’t decide the price of coal and gas will spike,” he told ABC Radio.
“We’re going to leave nothing on the field to ensure this is dealt with for industries, for workers and for consumers.
“We won’t do anything to fuel inflation … So anything we do will be seeking to reduce the bills before they arrive at the letterbox of consumers.”
Deputy Opposition Leader Sussan Ley told Channel 7 earlier that any bill reduction would come too late for families struggling to stay afloat this Christmas.
“All Australians want for Christmas is a reduction in their power bills. But here we are, on a Friday leading into Christmas and it seems so chaotic between the federal and state governments with no real plan,” she said.
“Please Prime Minister, come out of today’s meeting – this is the test – give us the plan that gives us the confidence that this is not one of your broken promises.”
Mr Bowen said the government wanted the issue to be “sorted” by Christmas.
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