The Labor government’s energy plan set to pass through parliament in 2023 has been labelled a ‘soviet-style’ policy with claims gas bills could rise by $175 a year. Santos CEO Kevin Gallagher is leading the criticism of the government, warning of a hit to investment and jobs in the industry. However Evan Lucas from Investsmart suggests modelling shows Australians could be saving up to $230 a year if it stays at the same price and the caps go through.
And Australian homeowners should be aware that the Labor government’s energy plan set to pass parliament has been slammed as a ‘soviet-style’ policy due to claims that our gas bills could rise by as much as $175 a year. This is a concern for the industry, with Santos CEO Kevin Gallagher warning of a hit to investment and jobs. Santos is one of Australia’s biggest gas producers. Gallagher said that this new legislation could cause blackouts, increase the cost of bills as well as impacting on future projects and investment.
The government’s plan to temporarily cap the price of gas and of coal, bring a mandatory code of conduct to the gas industry and to additionally provide millions of dollars worth of subsidies to business and households.
This legislation was passed through the house yesterday meaning we should see the effect of these short term measures early in 2023 as the government continues to drive a long term shift to renewable energy sources.
However, despite industry criticism, there is a silver lining, with economist Evan Lucas suggesting homeowners could save up to $230 a year if the proposed caps go through and prices stay the same. It is important that we look into our energy options carefully before making any decisions.
