‘They promised’: Matt Kean hits out at Albanese government’s power price cap plan

NSW says the federal government “can and must” fix oil and gas prices to save Australians from crippling power bills.

The NSW Energy Minister has hit out at the federal government’s plan to lower energy prices.

The Albanese government is expected to unveil a plan to state and territory leaders at next week’s national cabinet that would set a domestic coal price cap in a bid to drive down skyrocketing power bills.

It’s expected Queensland and NSW will be asked to impose their own caps on coal in a bid to prevent the commonwealth from having to pay billions of dollars in compensation.

Despite earlier indications it would support a cap, Queensland says it will oppose any attempt to force a price on coal without compensation, with Premier Annastacia Palaszczuk saying she will not sacrifice the state’s returns.

Matt Kean says the federal government must make good on its promise to lower power bills. Picture: NCA NewsWire / Gaye Gerard

Meanwhile, the South Australian government is arguing that NSW and Victoria need to develop their own gas fields.

Matt Kean says he has received legal advice that the Albanese government “can fix” coal and gas prices.

“Our message to SA, our message to Queensland and most importantly, our message to the commonwealth is the federal government announced these price rises as part of their budget, and they promised that they would do something to ease pressure on bills,” he told 2GB.

“So far, they’ve spent two months consulting themselves and the unions and I’m worried that they’re only going to deliver an excuse, nothing to drive down prices.

“The commonwealth needs to act on both coal and gas – they have the ability to take steps in the gas industry and the ability to take steps in the coal industry.

“I’ve got legal advice that they can fix coal and gas prices. It’s a national problem and it needs a national solution.”

Power bills have gone up 20 per cent this year and are expected to climb a further 30 per cent over the next year. Picture: NCA NewsWire / Andrew Henshaw

On Tuesday, Ms Palaszczuk hit out at the Albanese government, slamming the proposed coal price cap plan.

“Queensland is always doing the heavy lifting, and we need to make sure that if there are any steps by the commonwealth in this direction, Queenslanders are fully compensated,” she said.

There have also been warnings that a price cap of $11-$13 a gigajoule on domestic supplies risks blackouts next year.

Mr Kean said the current crisis proved how important it was to invest in, and develop, renewable energy sources.

“Gas is an expensive way to generate electricity. It’s important to firm up renewables,” he said.

It’s understood the government’s energy plan will not include new taxes but will strengthen a mandatory code of conduct to increase domestic gas supply and consider subsidies to help lower bills for struggling businesses and households.

This all comes as a new report revealed a 39 per cent spike in households struggling with energy debt above $2500.

National cabinet will meet next week to discuss the energy plan.

Originally published as ‘They promised’: Matt Kean hits out at Albanese government’s power price cap plan