Albo’s energy policy a ‘slow-motion train wreck’: Dutton

Plan to interfere in energy markets and cap price for gas and coal will do nothing to fix energy bills in the long run if more is not done to increase supply, the federal Opposition has argued.

Opposition leader Peter Dutton has slammed Labor for unleashing a “slow motion train wreck on energy policy and the cost of living” via a plan to impose price caps on coal and gas producers and provide bill relief for some Australians.

Mr Dutton’s comments came as the share market was rocked by the government’s attempt to intervene in local energy markets, with electricity and gas retailer Origin Energy’s share price down nearly 8 per cent in Monday’s trading.

“After months of inaction and delay, the PM has failed to deliver any meaningful relief for millions of Australian households and businesses facing skyrocketing energy bills,” Mr Dutton said.

“We are watching a slow-motion train wreck on energy policy and cost of living under this government.”

“Labor’s rushed energy package will come as a cruel hoax to the millions of Australians who took the Prime Minister at his word when he promised a solution to this crisis before Christmas.

Origin Energy's Eraring power station is one of the many coal fired generators that will see the price of coal capped under Labor’s plan.

“It’s little wonder energy experts are calling this package the single worst piece of energy policy seen anywhere in the last 20 years.”

Under the terms of labor's scheme, wholesale energy prices would be capped at $12 per gigajoule for gas and $125 for coal, with compensation to be paid only if production figures exceeded those amounts.

Pauline Hanson says Labor’s plan will do nothing to increase supply. Picture: Martin Ollman

According to Prime Minister Anthony Albanese, this will lead to families seeing their power bills decline by up to $230, though prices are tipped to increase by far more than that this year and next.

The government’s energy bill is due to be debated at a special session of parliament this Thursday where it is expected to face a fight to secure the necessary numbers for passage.

However the Greens and independent ACT senator David Pocock have demanded more emissions reductions while One Nation’s Pauline Hanson has said she will not support it as “(the bill) will have zero impact” on power prices.

“It is not the relief bit that seems to be the issue, it is the gas and coal bit,” Senator Jacquie Lambie said Monday.

At the same time, energy industry leaders are believed to be preparing to mount a multimillion campaign against the price caps.

One source familiar with the planned campaign said “It’s just crazy there is nothing to address supply in the government’s legislation … they’re recalling parliament to achieve literally nothing.”

However, the government accused the Coalition of not having plan to bring down energy bills.

Treasurer Jim Chalmers said, “On Thursday … Peter Dutton and the Coalition will vote for higher energy prices, more pressure on manufacturers and other industries, and no support for families to help with their electricity bills.”