“A temporary, emergency price cap is also proposed to ensure industry remains viable, and to limit the impact of global energy pressures on households and businesses.
The government intends to introduce primary legislation this year to put in place a strong enforcement framework for the mandatory code and price cap.
Consultation on the draft Bill closes on 13 December 2022.
Consultation on the price cap will close on 15 December 2022, reflecting the urgent and temporary nature of this intervention. Subject to the outcomes of the consultation, it will be implemented promptly via regulation before the end of the year.”
Consultation on the mandatory code, including the reasonable pricing provision, will remain open until 7 February 2023, and it will be implemented via regulation in early 2023.
[Department of Climate Change, Energy, the Environment and Water, 09 December 2022 1:48pm]
The Guardian, 9 December 2022:
Canberra and the states have agreed to cap coal and gas prices, and provide additional rebates for Australians on low and middle incomes, as part of a $1.5bn intervention that will shave hundreds of dollars off power bills.
After a national cabinet meeting on Friday, governments have agreed to cap gas prices temporarily at $12 per gigajoule and cap coal prices at $125 per tonne. Parliament will be recalled next week to implement the change.
Officials said on Friday consumers would have been $230 worse off without the price caps.
The Albanese government has set aside $1.5bn to fund additional consumer rebates for people on federal government payments. Officials say the rebates, to be co-funded with state governments, will deliver power bill savings worth hundreds of dollars next year, although the benefits will vary from state to state.
The rebates will be applied directly to power bills, rather than cash handouts. People on income support, pensioners, holders of a seniors health card, recipients of the family tax benefit and small businesses will be eligible for the relief, with the states to match the commonwealth contribution dollar for dollar.
The new temporary price caps mean retail electricity prices will increase by an estimated 23% rather than a 36% rise anticipated in the absence of intervention. Gas prices will increase by 18% this year and 4% next year. The price caps are set to remain in place for 12 months.
In a press conference from his Sydney residence, Anthony Albanese said the package finalised by national cabinet was necessary given “extraordinary times”.
The extraordinary regulatory intervention was triggered by a new forecast in the October budget of a 56% increase in power prices by the end of 2023. About 20% of that predicted increase is already flowing through the system…..
