Peter Dutton reveals Coalition’s plan to reduce Aussie power bills with new modelling

Peter Dutton has explained how the Coalition’s plan to significantly reduce power bills will work, revealing savings would be felt from “day one”. Find out how much you could save.

Australian households would save seven per cent on their gas bill due to a significant drop in wholesale prices under Peter Dutton’s energy plan, analysis has found, with the Liberal leader claiming savings would be felt from “day one”.

The Opposition leader has finally released the modelling behind his promise of lower gas and electricity bills by the end of 2025 as a result of the Coalition’s pledge to create a domestic gas reserve for Australia’s east coast states.

Mr Dutton was in Erskine Park in Sydney on Wednesday to promote the bold gas plan, saying the policy would bring down costs from “day one”.

“Under our plan, we bring more gas in straight away because we speak to the companies from day one,” he said when asked exactly when power prices will start coming down if Mr Dutton is elected prime minister.

“Some of the big gas companies aren’t happy, but I’m fighting for families and I’m fighting for small businesses and for bigger manufacturing businesses so that we can bring costs down across the economy.

“We decouple from the international price and we can see more gas coming into the system by the end of this calendar year. And that’s when you’ll start to see a reduction in those prices.”

Liberal opposition leader Peter Dutton at the Sky News / Daily Telegraph Peoples Forum with one of the voters from the audience. Picture: Jason Edwards / NewsWire

He said the impact would be felt quickly for housholds and commercial users.

The independent analysis produced by Frontier Economics found Australians would also get a three per cent reduction on electricity prices, meaning a household bill of $1817 a year, would save about $54.

A small business with a typical annual electricity bill of $4084 would save about $122.

Meanwhile, a seven per cent cut to the mid-range residential gas bill of $1192 would be a $83 saving.

Households using a high amount of gas for things like heating, cooking and hot water with an average bill of $1,792 would save about $125, while lower users with a typical bill of about $502 would save about $35.

Industrial energy users like steelmakers, brickworks and food manufacturers would get a 15 per cent reduction in their gas bill and a seven per cent reduction in electricity.

The Opposition leader has finally released the modelling behind his promise of lower gas and electricity bills by the end of 2025. Picture: NCA NewsWire / Andrew Henshaw

Ten days after he revealed the Coalition had modelling to support his claim a domestic gas reserve would directly bring down electricity prices for households this year, Mr Dutton released the modelling during the first leaders debate against Anthony Albanese.

The Prime Minister has also been under pressure to explain his own energy plan for Australia after Labor’s $150 rebate expires, with Mr Albanese unable to rule out prices would go up after the temporary subsidy for households and small businesses ends in December.

He also refused to apologise to Australians for Labor’s failure to deliver on its last election promise of a $275 saving on energy bills by this year compared to 2021 levels.

Mr Dutton and Mr Albanese clashed over energy during the Sky News Australia and Daily Telegraph People’s Forum debate hosted at the Wenty Leagues Club in Western Sydney on Tuesday night.

NAustralian Labor Prime Minister Anthony Albanese debates Liberal opposition leader Peter Dutton at the Sky News / Daily Telegraph Peoples Forum. Picture: Jason Edwards / NewsWire .

The Opposition leader promoted his plan to work with gas companies to ensure they direct 50 to 100 petajoules extra into the Australian market, which would be equivalent to a further 10 to 20 per cent of current demand.

Frontier estimated this would deliver a 23 per cent reduction in wholesale gas prices, which would lead to an eight per cent reduction in wholesale electricity prices.

The lower savings for households and businesses reflects the additional supply charges and other costs they experience.

Mr Dutton said in times of global uncertainty, Australians needed the confidence that came from secure affordable energy, like gas.

“We sit on some of the most abundant gas reserves in the world — it’s time we unlocked those resources to lower prices, protect jobs, and power Australia,” he said.

“Gas is critical to our nation’s energy future.

“Our policy will be a gamechanger because we can then see the cost and therefore price of electricity, construction, food prices and many other goods start to come down.”

Originally published as Peter Dutton reveals Coalition’s plan to reduce Aussie power bills with new modelling