Treasurer Jim Chalmers says he ‘misheard’ a question about power bill savings

The Treasurer has conceded he made a slip-up about Labor’s promise to reduce power bills by $275 a year.

Jim Chalmers has conceded he incorrectly told the National Press Club Labor’s promise to cut power bills by $275 had been included within the federal budget.

The Treasurer was asked on Wednesday if he stood by the pledge to slash bills by $275 a year by 2025, despite the budget’s alarming energy forecasts.

Asked to give a one-word answer to whether Australians could still expect the saving on pre-election electricity prices, Mr Chalmers said: “Yep, it’s in the budget.”

Mr Chalmers corrected himself about an hour later.

He told the House of Representatives he had “misheard” and thought he was answering a “different” question.

He said he rang the journalist who had asked him the question — the Nine Network’s new political editor Charles Croucher — right after the press club event to “fess up”.

“I was temporarily blinded by the vast influence of Charles Croucher who has inherited this remarkable position of power from Laurie Oakes and Chris Uhlmann,” he joked, referring to Croucher’s predecessors in the Nine role.

He made the concession as the Coalition used question time to savage Labor over rising energy prices.

Mr Chalmers argued the opposition should shoulder the blame for electricity prices going up, given they had been in charge of the nation’s energy policies for nearly a decade.

Treasurer Jim Chalmers says he misheard a question about power bills. Picture: Martin Ollman/Getty Images

Labor said before the election its “Powering Australia” plan to modernise the nation’s electricity grid would result in families and businesses saving $275 a year by 2025.

Tuesday’s budget outlined new Treasury forecasts about soaring power coasts.

The budget papers say energy prices will rise sharply, with power bills set to jump 20 per cent by the end of the year and a further 30 per cent in 2023-24.

Gas prices are also forecast to increase 44 per cent in the next 18 months.

Anthony Albanese said the federal government would give “strong consideration” to intervening in the energy market to curtail prices.

“We’ll be taking the advice of the appropriate departments about an appropriate intervention,” the Prime Minister told the ABC.

“We understand the pressures that are on here.”

Mr Albanese said he stood by Labor’s modelling showing households would save $275 a year on their power bills by 2025.