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AAP
AAP
Politics
Dominic Giannini

Gas gouging 'greedy' from energy retailers

The industry minister has chastised large energy companies for being greedy and not taking price pressures hitting families and businesses seriously.

Spiking gas and energy bills are hurting the hip pockets of Australians, with pressures set to increase.

Ed Husic said contract gas price offers after an agreement between the federal government and providers were just as high, if not higher, than before.

The agreement was supposed to secure supply for the domestic market and put downward pressure on prices.

"This is not a shortage of supply problem, this is a glut of greed problem," he told ABC radio on Thursday.

"They're not taking this issue seriously."

The minister said the "tone deaf" actions of gas companies were forcing the government to consider further interventions in the market.

He said LNG exporters were pricing gas in Australia at higher prices they couldn't expect to receive on the even more volatile international market.

"These companies are just not doing the right thing," he said.

Senior Liberal senator Simon Birmingham said the actions of big energy companies prove the government's negotiations haven't been effective, or there were further underlying issues to address.

"In previous years when we sat down as a government with gas companies to ensure effective supply, it also delivered price benefits," he told ABC radio.

Nationals MP Kevin Hogan called for the government to get on with the job.

"The government keeps saying they're looking at it and talking about it," he told Sky News.

"We want to see their solution, and we may well potentially 100 per cent support it."

Mr Husic is touting longer-term reforms to force the hands of gas companies as the prime minister defends his government's first budget not offering any help to struggling families.

Anthony Albanese said handouts would only add to inflation and drive up interest rates, instead spruiking greater investment in renewable energy as the answer.

But the government has refused to put a timeframe or a number on lower prices.

The prime minister's pre-election pledge to lower energy bills by $275 by 2025 has been all but scrapped from the government's talking points.

Asked directly if the $275 figure is still the benchmark target, Mr Albanese said "the guarantee is that renewables are the cheapest form of energy".

Assistant Treasury Minister Andrew Leigh asked Australians not to get ahead of themselves, with the energy bill modelling still being three years away.

"We're being upfront with the Australian people this projection was for 2025, so I don't think we need to be too concerned about this issue at the moment," Dr Leigh said.

"Our main focus is on making the shift to renewables."

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