The Albanese government will receive advice on possible interventions in the energy market as early as next week, including potential price caps, bargaining provisions for smaller energy users, and a legally binding code of conduct for the gas sector.
At Senate estimates on Thursday, the Australian Competition and Consumer Commission said it was preparing advice on a range of options for a new mandatory code of conduct for the sector, along with guidance on other “regulatory gaps” in the market.
It is expected that the government will adopt a suite of reforms to address the 56% increase in electricity prices and the 44% increase in gas prices forecast over the next two years outlined in the October budget. The federal treasurer, Jim Chalmers, has said all options are on the table.
The Treasury this week gave the green light to an intervention, arguing that war-induced price shocks being felt by households and businesses required the government to step in.