Parliament will be recalled on Thursday for MPs to debate the measures to cap gas at $12 a gigajoule, introduce a mandatory code of conduct for the gas market and roll out power bill support for welfare recipients.

It is expected electricity bills will still rise by 23 per cent, but not as much as the previously anticipated 36 per cent.

Labor has a majority of votes in the lower house but needs the support of the Greens plus one crossbencher to get the bill through the Senate.

In exchange for support from the Greens, the government has agreed to a package in next year’s federal budget that would allow for households and businesses to switch from gas to electricity.

It is expected to be targeted at low-income households, renters and those in public housing.

Energy Minister Chris Bowen said the price caps would take the sting out of rising energy costs.

“These price rises were not brought about by the actions of Australian people or industry, they were brought about by Vladimir Putin and Australia being ill-prepared for such a crisis,” he said in Canberra.

“These are unprecedented and difficult times and this is decisive action. It’s our job to act in the national interest.”

Greens leader Adam Bandt said electrification would help to cut energy bills.

“The Greens are helping rein in gas corporations and help put more money in people’s pockets,” he said.

“It is a good day for people, a good day for bringing down power bills and a bad day to be a greedy gas corporation.”

The Greens have indicated while they will support the government’s price cap plans, they are still calling for a two-year freeze on electricity bill prices, and will still oppose compensation measures for coal companies.

Coal price caps of $125 a tonne will be negotiated with Queensland and NSW, putting further downward pressure on power prices.

A mandatory gas market code would regulate the supply and purchase of gas, which Bowen said would ensure “reasonable pricing”.

“If you want to argue for the right to price unreasonably, I think that’s a courageous argument to mount,” he said.

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 said 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 a stunt.

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 said 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.”

The coalition has written to Treasurer Jim Chalmers calling for the government to provide the opposition with the legislation before Thursday.

-with AAP