Annastacia Palaszczuk warns Albanese government against coal price cap

Annastacia Palaszczuk puts federal Labor on notice as it finalises a plan to tackle soaring electricity prices.

Queensland Premier Annastacia Palaszczuk speaks during Question Time at Parliament House in Brisbane. Picture: NCA NewsWire / Dan Peled

Annastacia Palaszczuk has issued a stern warning to the Albanese government not to introduce a coal price cap to tackle rising energy prices and blasted southern states for failing to ensure adequate gas supply.

Federal cabinet will finalise a response to soaring electricity prices before national cabinet meets next week, which is expected to lower costs via temporary ­direct energy price subsidies.

The Australian on Tuesday reported the package would not include new taxes or direct payments and both the NSW and Queensland governments had flagged support for a coal price cap.

But Ms Palaszczuk said Queensland, where the state government owns and operates coal mines and power stations, would not support a cap.

“I was surprised to read an article in today’s Australian,” Ms Palaszczuk told state parliament on Tuesday.

“I say very clearly to the federal government: hands off our generators. There is no way that Queensland is going to sacrifice the returns that we are able to provide back to Queenslanders.

“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.”

Ms Palaszczuk also took aim at NSW and Victorian governments for failing to ensure enough gas supply.

“I also say this to the southern states: Queensland is doing the heavy lifting when it comes to gas.

“If the issue is supply, New South Wales and Victoria can open up some of their gas fields.

“I am making Queensland’s position very clear to the federal government and the New South Wales and Victorian premiers: our energy assets are working well in Queensland, we have the plan and we will not jeopardise the returns that are going back to Queensland households.”