The federal government will seek to take permanent control of gas prices when it introduces radical new legislation to parliament on Thursday, a move that industry leaders say would increase the risk of blackouts by killing exploration and cutting supply.
The laws would give the government the power to decide the “reasonable price” of gas and go well beyond the emergency $12 a gigajoule price cap announced by Energy and Climate Change Minister Chris Bowen on Friday. Some analysts are warning the move could derail the $18.4 billion takeover bid for Origin Energy.