Prime Minister Anthony Albanese is confident his government's energy relief package will pass parliament with the support of all major parties when it goes to a vote on Thursday, despite the Greens flagging they will oppose sections of the bill.
Mr Albanese announced late last week that national cabinet had agreed to a package put forward by the government that would see price caps put in place on gas and coal, and bill relief for eligible households.
The final hurdle for the legislation to enable the package is to pass federal parliament when it is recalled this Thursday.
Greens leader Adam Bandt yesterday vowed to fight the legislation if it also provided compensation to fossil fuel companies, and the Coalition has described the plan as a "monster in the making".
Labor would need the support of either the Coalition or the Greens in the Senate to pass the legislation.
Despite the comments from both parties, the prime minister said he believes it will pass later this week, and would be "stunned" if the Coalition voted against it.
"I am very confident that when faced with 'do you want a price cap on gas?', a majority of the House [of Representatives] and Senate will say yes," Mr Albanese said.
"And when asked 'do you want relief for people who are Commonwealth recipients in a $1.5 billion program to reduce their energy bills?' they'll say yes as well."
Mr Albanese said the government would make payments to coal producers if the cost of production was higher than the price cap of $125 a tonne to make sure there are no disincentives for producers to continue to supply the market.
It is understood plans for the compensation will not be in the legislation, and instead will be organised by the states in collaboration with the federal government.
"If the costs of production aren't higher than that then, of course, the supply will continue," he said.
But he rejected reports it could mean up to $500 million in Commonwealth assistance.
Mr Albanese said he had spoken to Mr Bandt and Opposition Leader Peter Dutton about the plan and would continue to consult with them, but would not say if he was open to negotiating the package.
The Greens leader said the public should not have to pay to cover shortfalls from fossil fuel producers given the record profits they have been making given high export prices amid the war in Ukraine.
"It should be the other way round, these big gas corporations pay next to no tax, they often get their gas for free and now the coal corporations have even got their hands out from the public purse," Mr Bandt said.
Mr Dutton rejected that the Coalition would be supporting higher power prices by not supporting the legislation.
"The government is not providing any guarantee that you'll see a reduction in power prices or gas prices in what they're doing," he said.
Under federal law, retailers have to pass on "significant and sustained cost reductions" to their customers — that is, they can't keep the savings from cheaper wholesale energy to make more profit.
The prime minister argued the plan had been endorsed by leaders and energy ministers of all states and territories, which included Labor, Liberal and Greens ministers.
The Australian Petroleum Production and Exploration Association (APPEA) has also voiced its opposition to the plan, saying the most effective way to lower prices is to bring more supply into the market.
APPEA Chief Executive Samantha McCulloch said APPEA was also concerned with a provision in the government's proposed mandatory code of conduct for the industry, which would look to regulate prices on a long-term basis.
Mr Albanese said that was a separate issue, and the proposal was part of a draft discussion paper for the code which is open to consultation.
