Wholesale gas and thermal coal prices will be capped and households offered bill support, under a national cabinet deal to counter surging electricity prices
Look back on our blog to see how Friday's updates and reactions unfolded.
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Stay up to date with the latest news and analysis
By Jessica Riga
This is where we'll have to leave the live blog for today, but thanks for following along.
You can catch up on Friday's developments below, or download the ABC News app and subscribe to our range of news alerts for the latest news.
You can also stay across the latest updates in our main wrap. Bye for now!
Australian Energy Council says good news for customers in the short-term but price cap impact uncertain
By Jessica Riga
The Australian Energy Council says direct government support to vulnerable households and small businesses is a positive step in the short term, but announced caps on upstream fuel costs may not deliver the desired lower prices.
"Direct support is an effective way to deliver timely bill relief to consumers and we welcome this initiative," AEC chief executive Sarah McNamara says.
"The recent exceptionally high energy prices we have seen have not been caused by the activities of electricity generation or energy retailing but are due to international factors outside their control.
"Market participants are not making large profits in these conditions. The war in Ukraine and other global factors have produced a complex set of circumstances which have placed extraordinary pressure on energy markets, and on customer bills throughout 2022."
APPEA criticises lack of industry consultation
By Jessica Riga
The Australian Petroleum Production and Exploration Association (APPEA) has criticised the Albanese government's lack of consultation with industry before today's announcement.
"A gas price cap will force prices higher for households and businesses because it will kill investment confidence and reduce future supply," APPEA Chief Executive Samantha McCulloch says.
“Less gas will ultimately mean higher prices while threatening Australia’s energy security, our emissions reductions goals and the enormous economic benefits that the industry delivers for Australians.
“This heavy-handed, radical intervention has been conducted with no prior consultation with industry to consider specific measures and warn of potential risks to Australia.
“Today’s decision is the opposite of what should have happened – the Government should be providing confidence to the market with positive policies that promote investment in new supply that can put downward pressure on prices and secure all the other benefits of having more gas production."
Ms McCulloch said analysis by EnergyQuest showed price caps would have the opposite impact of what was intended, ultimately leading to higher prices down the track by reducing investment confidence and future supply as investors went elsewhere.
“From negative impacts for exploration to development of gas resources, the economics of gas storage in Victoria and the viability of LNG imports on the east coast, EnergyQuest found a price cap could have substantial long-term economic implications,” she said.
NSW Premier welcomes national cabinet agreement
By Jessica Riga
New South Wales Premier Dominic Perrottet has released a short statement this afternoon following today's national cabinet meeting.
The NSW government welcomes the federal government's agreement to our request for financial support to households and businesses.
The NSW government will work with industry to ensure downward pressure on prices while securing domestic coal supply.
We also welcome the federal government's commitment to developing compensation arrangements for the sector, which will help ensure there are no disruptions to electricity generation in NSW.
Watch: PM outlines measures to drive down on energy prices
By Jessica Riga
Dutton calls coal and gas cap a 'catastrophic decision'
By Jessica Riga
"The Prime Minister has delivered a model today that’s going to see Queenslanders pay more for their electricity, pay more for their gas," Opposition leader Peter Dutton says.
"That’s going to be the long-running reality of what the Prime Minister has promised.
"I think we're going to look back in 12 months time realising that this was a catastrophic decision made by a very bad government. A government that can't get the economic calls right, and a government that is presiding over economic calls which will see electricity prices go up, gas prices go up, and a situation where their mortgages continue to go up."
Opposition calls PM's announcement a 'broken promise'
By Jessica Riga
Here's what Opposition leader Peter Dutton is saying:
"Before the last election… the Prime Minister looked the Australian public in the eye … and said that power prices would reduce by $275. Now that is dead and buried in the announcement today. It’s clear that this is a significant broken promise by the Prime Minister.
"What the government needs to do is to drive more supply, more gas into the marketplace instead of reducing supply at a time when you’ve got increased demand."
Opposition leader Peter Dutton is speaking now
By Jessica Riga
Coal and gas caps to cut $230 from expected price hikes, but the pain is not over
By Jessica Riga
Here's more from political reporter Jake Evans.
The federal government is forecasting its energy market intervention will spare Australian households an average $230 on power bills than if it had not moved to cap coal and gas prices.
But don't expect your bills to get cheaper.
At the federal budget in October, Treasury modelling suggested electricity prices were set to increase a painful 56 per cent over two years.
It now says the intervention will curb that increase to 47.6 per cent, which amounts to a $230 reduction for the average household.
That still leaves some intimidating price hikes on the horizon, which is why Commonwealth and state governments have promised to pour a combined $3 billion into energy bill relief for small businesses and people on income support, due to be finalised by March next year.
Business Council of Australia responds
By Jessica Riga
Business Council chief executive Jennifer Westacott says national cabinet's energy plan "delivers welcome relief for households and small businesses, but without careful management the long-term consequences of dramatic intervention could end up making the problem much worse."
"This is a hugely complex system and there are no easy answers. It's good that state and federal governments have found a way through but this plan comes with big challenges.
"Targeted support for households and small businesses dealing with record energy costs will be welcome relief but without careful management price caps will have long-term consequences that drive up and sustain higher prices for consumers.
"Today's short-term actions will need to be matched with a commitment to driving long-term reform if Australia is serious about avoiding another decade of energy uncertainty."
Back to the cap on coal and gas prices
By Jessica Riga
A lot of you are asking how much this will impact your hip pocket.
Prime Minister Anthony Albanese said parliament would be recalled next week to pass legislation that would help impose a temporary cap on gas at $12 a gigajoule, and states would move to cap coal at $125 per tonne.
Treasury modelling suggests that Australian households will pay $230 less next year than if the government had not intervened, though it would not completely eliminate price hikes next year.
The Commonwealth will also fund up to $1.5 billion in energy bill relief to be paid out through the states to households and businesses, which Mr Albanese said would act as a deflationary measure.
You can read more below.
National cabinet also discussed COVID
By Jessica Riga
While energy was the main agenda item at today's national cabinet meeting, state and territory leaders also received a briefing on COVID-19 from acting Chief Medical Officer, Professor Michael Kidd.
Here's what they discussed, as outlined in this statement from the PM:
First Ministers agreed to a strategic framework to support the transition of measures and policies to a sustainable COVID-19 steady state.
We are moving towards managing COVID-19 like any respiratory illness but in a way that keeps Australians safe and protected.
The framework builds on the principles agreed by National Cabinet on 30 September 2022, to support a nationally consistent approach to transition Australia's COVID-19 response.
The Framework is published at www.federation.gov.au.
First Ministers agreed to extend the High Risk Settings Pandemic Payment over the summer period, to provide targeted financial support to casual workers in high-risk settings.
National Cabinet will monitor the need for the payment to continue.
Opposition leader Peter Dutton is expected to speak shortly
By Jessica Riga
We'll have all the details here when we hear from him.
When will the payment kick in? Your questions answered
By Jessica Riga
How soon after legislation passing would consumers see savings? - Nathan
Have they said how households will be receiving the $1.5billion support? - Laura
Hi Nathan and Laura! Thank you both for writing in.
Anthony Albanese says he expects bill relief to be rolled out from the second quarter of next year, but each state will deliver that relief differently, so we will have to wait until the nation's treasurers meet to find out exactly how that will be rolled out.
But we know payments will be made to people on Commonwealth income support payments, such as pensioners and people on Jobseeker. The Prime Minister says his warning during the budget in October that the government planned to take action have already put some downward pressure on prices.
Inside national cabinet
By Jessica Riga
Victorian Premier Daniel Andrews has echoed a similar sentiment to the Queensland Premier writing: "We always work best when we work together."
More from the Queensland Premier
By Jessica Riga
"As we know, because Queensland own our power assets, we have been able to provide Queenslanders we rebates directly, $575 over the last four years," Queensland Premier Annastacia Palaszczuk told reporters just moments ago.
"We recognise there are cost of living pressures not just in Queensland but across the nation, and we all want to do our part to help.
"That's why we've agreed for the $125 a tonne cap on the coal prices and we will do this, not through legislation but through a direction to our government-owned corporations.
"It's good that this is only for one year, it's a temporary measure, and I commend the PM for that."
What you're saying
By Jessica Riga
I am a pensioner and request the power bill for pensioners to be reviewed and set at the minimum so we can afford it. - Karam
Palaszczuk 'absolutely pleased' with national cabinet outcome
By Jessica Riga
"At the end of the day we work best when we work together and I'm absolutely pleased with the outcome of today," Queensland Premier Annastacia Palaszczuk says.
