Heat comes for gas exports

Soaring price concern

PRIME Minister Anthony Albanese says he will act on soaring energy prices to provide short-term relief for struggling Australian households.

Meanwhile, his Industry and Resources Minister has taken aim at “greedy” LNG exporters and called for an urgent gas price mechanism.

Ed Husic also revealed gas contracts offered by exporters were “just as high if not higher” than before the September heads of agreement.

Before the election Labor promised to cut household power bills by $275 by 2025 but last week’s budget cast doubt on that pledge. Mr Albanese has now vowed to broker a deal by consulting with the resources sector and gas companies.

It comes as his government doubles down on its bid to not dish out one-off cost-of-living relief handouts for fear it would further impact inflation, favouring a widespread reformist agenda instead.

Mr Albanese admitted business relief would not be the priority of the negotiations, and suggested that Australia’s largest gas companies could face higher taxes.

Speaking at The AustralianMelbourne Institute Outlook conference on Wednesday, Mr Albanese said the government was not ruling anything out.

“The truth is that there are quite extraordinary profits being made, at the same time as you have prices which are putting real pressure on households and businesses, particularly in the manufacturing sector,” he said. “We’re seeking a co-operative arrangement. If we went out without co-operation, then the answer is easy.”

Mr Husic confirmed the ACCC was looking at whether to recommend implementing a mandatory code of conduct and price caps for gas companies.

“That code of conduct is to help better guide the way in which these contracts get negotiated … in terms of the other areas, we want to work that through internally,” he said.

When asked about whether the government’s intervention would be temporary, Mr Husic said his preference was to improve the bargaining framework itself.

He added that Treasurer Jim Chalmers was considering the option of taxes for oil and gas companies.

“If you look at what the Treasurer has said over the last few days, he is examining those types of options and again that will be in the mix of things he thinks through,” Mr Husic said. “I think the bigger focus long term is the price mechanism.”

Nationals leader David Littleproud criticised Mr Albanese and his government for “demonising” gas companies.

“All the government has to do is instead of demonising these gas companies, as they’ve done for the last nine years and blaming them for their own inaction in the policy setting of making sure it’s all export, is increase the supply,” he told the Nine Network. “This reckless path they are taking us on means everyone will pay.”