A plan to lower the power bills of Australians will be at the heart of today’s national cabinet meeting.
Prime Minister Anthony Albanese and premiers will will dial in remotely this afternoon to discuss ways of relieving pressure on households struggling with spiking energy costs.
The Albanese government plan depends on asking the states to cap the price of coal at about $125 per tonne – less than half the market rate – but this involves paying compensation of billions of dollars to major coal producers New South Wales and Queensland.
Both states collect billions in coal royalties every year and officials have been busy finalising a final compensation figure for the states.
National cabinet was put back two days and will be held virtually after Albanese tested positive for coronavirus on Monday.
A meeting of the country’s energy ministers yesterday agreed to a landmark deal involving renewable energy to ensure there is enough supply in the national electricity grid.
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Energy Minister Chris Bowen said the deal aimed to “keep lights on”.
Reducing household power bills has become a political priority for the federal government after they skyrocketed this year.
Power bills have gone up 20 per cent on average in 2022 and they’re predicted to rise another 30 per cent next year.
That would add around $1300 over two years to an average home’s electricity and gas bills.
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