When will you finally get some relief from skyrocketing energy prices?

When you finally get some relief from skyrocketing energy prices, as Treasurer Jim Chalmers reveals the brutal truth about the energy crisis.

  • Treasurer Jim Chalmers says energy price relief may not flow in until the middle of next year
  • The federal government is hoping to reach an agreement after asking states to cap the price of coal
  • However, no agreement has been reached before the national cabinet on Friday.

Australians hoping a deal between federal and state leaders will slash energy prices by Christmas may be disappointed after the Treasurer admitted relief might not come until the middle of next year.

The federal government is hopeful that it can negotiate a deal on the energy crisis after it asked states to cap the price of coal to less than half the market price.

But on Thursday morning, Jim Chalmers confirmed that the leaders had not yet reached an agreement before Friday’s virtual national cabinet meeting.

“This is a challenge of such complexity and of such importance to the industry and to Australians across the country that it must be a true partnership between governments,” he told ABC’s RN.

Treasurer Jim Chalmers has confirmed that no agreement has yet been reached on the energy crisis.

The issue of compensation for lost coal royalties, which skyrocketed due to the Ukrainian war, has proven to be a sticking point for Queensland and NSW.

Dr Chalmers said the federal government was prepared to offer a “reasonable” compromise, but cautioned that the budget was not a bottomless pit.

“It has to be a genuine partnership between governments and that requires all parties to come to the table in a reasonable and constructive way, which recognizes that one level of government cannot fix all of this alone,” he said.

While Prime Minister Anthony Albanese has called on states to cap coal prices, he has assured that Canberra will impose the mandatory code of conduct on the gas industry to limit prices to around $13 a gigajoule.

Electricity Prices Are Expected To Rise 56% In The Next Two Years

Electricity prices are expected to rise 56% in the next two years

The federal budget has forecast a 56 percent increase in electricity prices and a 44 percent increase in gas prices for homes over the next two years.

Dr Chalmers conceded that any government intervention would not result in immediate cost relief, indicating that Australians might not see a change in their energy bills until the middle of next year.

‘What we’re trying to do here is mitigate those price increases. We don’t have a policy before us right now that would mean an immediate cut in these bills, but we want to try to slow the pace of these increases,” he said.

‘Some of these increases… that were contained in my budget were already flowing. These were the increases that (former energy minister) Angus Taylor hid from the Australian people on the campaign trail.’

Energy Minister Chris Bowen will meet his state and territory counterparts in Brisbane on Thursday to discuss long-term strategies to reduce prices.

The group is set to decide on a model for a capacity mechanism to ensure supply without undermining emissions targets, which Bowen said had been put in the “basket too hard” for too long.

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