Treasury secretary Steven Kennedy has cautioned the government against crashing investment in essential supplies of additional gas for domestic consumption triggered through its proposed price caps and direct regulatory intervention in the market.

Insisting that gas will remain a crucial element of Australia’s transition to net zero emissions by 2050, Dr Kennedy indicated Labor was aware of the potential negative investment fallout when it designed the $12 per gigajoule price cap to be temporary and reviewed at the six-month mark.