Treasurer cautious about power price relief
Any energy price relief from the federal government will be limited to “responsible” payments, with the states expected to take on a greater share in the solution, Treasurer Jim Chalmers has indicated.
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Chalmers said the government was considering all options ahead of a national cabinet meeting on Friday, in a bid to help Australians with soaring energy bills before the end of the year.
His comments came as Prime Minister Anthony Albanese reportedly issued a list of demands to the NSW and Queensland governments to impose their own coal price caps, and recall parliaments to enact them.
A proposal from the Prime Minister’s office and Energy Minister Chris Bowen was provided to the states late on Tuesday calling on them to enact a coal price cap, The Australian newspaper has reported.
Speaking after the Reserve Bank hiked the cash rate for the eight consecutive time on Tuesday to 3.1 per cent, Chalmers said the government was negotiating with the states in good faith and they had a greater share to take on.
“We would prefer where possible a regulatory response here but we said we are prepared to consider other options as well, including if there’s a case for some responsible contribution from the Commonwealth,” he told reporters in Sydney on Tuesday.
The government has been wary of handing out cash in fear of adding to inflationary pressures and took a “bread and butter” approach to cost of living relief in the October budget.
Chalmers said any response would be “temporary and meaningful”.
“Our target and objective is to take some of the sting out of these price rises next year,” he said.
The treasurer said the shocking forecasts in the budget showing the price of electricity would rise 56 per cent over the next year “created a responsibility on governments, plural, to act on this challenge and that’s what we intend to do”.
National cabinet will be held virtually on Friday after Prime Minister Anthony Albanese tested positive to COVID-19.
Nationals leader David Littleproud called on Albanese to reconsider a national energy summit where stakeholders could have a “mature conversation” about power alternatives, including nuclear.
Energy ministers are due to meet in Brisbane on Thursday to discuss long-term strategies to drive down power prices and reduce emissions.
-AAP
