Coal price ‘just as important as gas’, says Mick de Brenni

Queensland Energy Minister Mick de Brenni says any move to regulate the price of gas should also include coal.

Queensland Energy Minister Mick de Brenni. Picture: NCA NewsWire / Dan Peled

Queensland Energy Minister Mick de Brenni says any move to regulate the price of gas should also include coal, amid division within federal cabinet over how to tackle the energy crisis.

With the federal government mulling an effective price cap on gas, Mr de Brenni said the plan to tackle energy prices needed to be broader than focusing on one part of the energy sector.

The soaring price of thermal coal is particularly impacting ­prices in NSW and Queensland, prompting the energy ministers in both states to urge against placing too much focus on gas.

“Because of the illegal war in Ukraine, the energy market isn’t responding well enough – even with forecast adequate domestic supply,” Mr de Brenni said. “So any potential solution would work best if it addressed prices across all energy resources.”

The Albanese government has confirmed it is considering adding a price transparency provision into a mandatory code of conduct for the gas industry, while it could also reform the export trigger to redirect supply to the domestic market if prices rise too high.

But the government has given no indication on whether it could regulate domestic coal, despite state energy ministers warning a more than sixfold price increase since the Ukraine war was driving increased electricity bills.

On Thursday, the divergent views within Anthony Albanese’s team on the energy crisis were on full display with Industry Minister Ed Husic accusing the gas companies of greed while Resources Minister Madeleine King praised the industry for creating jobs and wealth. While Mr Husic blamed gas producers for putting manufacturing jobs at risk, Ms King said there were two sides to the story and manufacturing bosses needed to shop around for better prices.

“We see anecdotal stories of very large manufacturers being asked to pay high prices whereas then there are wholesalers then offering lower prices for future years,” Ms King told Sky News.

“So maybe there’s a situation where some … purchasing departments aren’t doing the ring-around to get better prices.

While Ms King is pushing for the exploration of new gas reserves, Mr Husic said the crisis had nothing to do with supply.

“This is not a shortage-of-supply problem; this is a glut-of-greed problem that has to be basically short-circuited and common sense (must) prevail,” Mr Husic told the ABC.

However, both Mr Husic and Ms King were united in pouring cold water on the push from Victoria and NSW for a domestic gas reservation.

In response to the ministers, the gas industry slammed Mr Husic while manufacturing bosses disputed Ms King’s claim they could be shopping around for a better energy deal.

Australian Petroleum Production and Exploration chief Samantha McCulloch said Mr Husic was wrong to say domestic gas users were paying more than international customers.

“Shopping around is easy if there are places to shop,” said Ai Group managing director Innes Willox. “The growing lack of competition in the market is becoming stark and is further distorting price outcomes.”