Gas prices capped for a year after energy bill passes parliament
Power price relief is now headed for Aussie budgets with gas prices to be capped for a year after the government passed its energy intervention package through parliament.
The four-point energy plan, spruiking a $1.5 billion bill, was agreed upon by national cabinet last week but now the plan is law.
It includes money paid to state and territory governments to ease pressure on energy bills, capping gas prices at $12 a gigajoule for a year, capping coal prices at $125 per tonne in NSW and Queensland, and bolstering the country's renewable energy capacity.
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Energy price relief is on the way for Aussies after the government's bill passed parliament. 9News
The energy relief bill passed the Senate 28 votes to 22 after earlier progressing through the House of Representatives.
It comes after the government struck a deal with the Greens, all but guaranteeing the bill's passage.
Some crossbenchers also voted to pass the plan.
"We stand for Australian manufacturing. And we stand for Australian households. And this legislation will support both," Prime Minister Anthony Albanese said.
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Prime Minister Anthony Albanese said the legislation will support households. 9News
But not everyone was impressed with the legislation, as the opposition mostly voted against it.
The Greens said households will be hundreds and even thousands of dollars better off under the agreement.
"It's time to take on the greedy coal and gas corporations, bring down power bills and put more money in people's pockets," Greens leader Adam Bandt said.
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The energy relief plan aims to help reduce bills for consumers. Luis Enrique Ascui/The Age
The federal government's plan is all about intervening in the energy market after this year saw threats of blackouts and skyrocketing prices due to shortfalls in the system.
Now that the government can intervene on gas and coal price caps, it's hoped it will filter down to ease pressure on consumer budgets.
Energy market intervention will slow but not stop wholesale price increases but big coal and gas companies are not impressed after their previous monopoly on choosing their price was slashed by this energy bill.
Parliament was specially recalled today to vote on the bill but the Coalition was furious they only saw the bill late last night.
"This bill isn't going to give enough relief from the rising energy costs, but it's something," senator Tammy Tyrrell said.
Gas companies share the fury claiming it will ruin the market as the plan provides more incentives for households to switch to electricity, but not everyone was buying their argument.
"The gas industry are the biggest bludgers in Australia," CEO at Smart Energy Council John Grimes said.
The question now turns to when exactly households can expect to see some relief.
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