The coalition has revealed the details of their plan to make energy cheaper, should they come into government in next month’s federal election.
The Opposition has proposed a set of plans to target Australia’s gas supply, which they say would bring the cost of electricity down for homes and businesses.
According to modelling released by Frontier Economics, these initiatives to target Australia’s gas supplies could cut the cost of electricity by 3 per cent.
The Coalition is proposing the creation of a $1 billion fund for infrastructure for gas projects, which they say would help relieve gas supply constraints.
They have also said they would give $300 million for a strategic basin plan that would help develop gas resources.
Frontier Economics pointed out that a major reason why Australians pay so much for gas is that gas-producing companies can earn more profits by selling Australia’s gas to international customers.
The Coalition said their policy would involve the creation of a so-called “East Coast Gas Reservation Scheme”.
This would require gas suppliers to hold some of the gas they produce for the domestic market.
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Frontier Economics concluded that the coalition’s policies would increase the available gas supply, and therefore bring down prices.
“It would be expected to result in a 15 per cent reduction in retail gas bills for industrial customers,” the report said.
According to the modelling, the policy could reduce retail gas bills by 7 per cent, and therefore reduce residential electricity prices by 3 per cent.
