Australia's Government Introduces Domestic Temporary Price Cap On Gas, Coal

MOSCOW (UrduPoint News / Sputnik - 09th December, 2022) The Australian government has taken the extraordinary step of capping domestic gas and coal prices for one year under the country's Energy Price Relief Plan amid the deteriorating global energy crisis, Australian Prime Minister Anthony Albanese said on Friday.

"The urgent action we are taking with the Energy Price Relief Plan will shield Australians from the worst impacts of price increases, delivering responsible and targeted relief to families, small businesses and manufacturers," Albanese said in a statement.

Under Australia's energy price relief plan, the government will limit gas and coal prices, provide rebates on energy bills for households and businesses, as well as invest in cleaner, cheaper and more reliable energy, the statement read.

"Extraordinary times call for extraordinary measures," the prime minister said.

The ceiling price for gas will be set at 12 Australian Dollars ($8.1) per gigajoule and 125 Australian dollars per tonne.

If the energy plan is not implemented, the average household will be 230 Australian dollars worse off in 2023, according to the statement.

The Australian government will also create a fund to lower energy bills. This support would be available to those in need, including retirees and job seekers, but it would not be the same in every Australian state because of differences in their systems, the statement read.

"The Commonwealth will establish an Energy Bill Relief Fund with up to A$1.5 billion to deliver relief directly to electricity bills," according to the statement.

Global energy prices have been rising as part of a global trend since 2021. After Russia launched a military operation in Ukraine in February and the West adopted several sanctions packages against Moscow, gas prices accelerated their growth, placing energy security high on both the global and national agendas and pushing many countries to resort to contingency measures.