The renewables push could create political risk because any cost blow outs on tens of billions of dollars of clean energy projects would need to be recouped through taxes or power bills. The budget also forecast energy prices to rise 30 per cent.
The budget papers revealed the government has beefed up its threat to gas companies,followingwarnings earlier this month from Treasurer Jim Chalmers and Industry Minister Ed Husic that they must deliver more affordable energy to the local market.
The Australian Domestic Gas Security Mechanism,known as the “gas trigger”,allows the government to redirect gas exports into the local market,but its rules meant it could only do this once a year. However,from mid-2023 the resources minister will be able to pull the trigger on export limits four times a year.
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The Australian Energy Regulator has also been given the job of monitoring consumer gas prices,while the Australian Competition and Consumer Commission received a $10 million funding boost to monitor gas exports and potential domestic shortfalls.
Minister for Climate Change and Energy Minister Chris Bowen said the budget was “Australia’s road map to delivering cleaner,more affordable energy to households and businesses”.
“The cheapest form of energy is firmed renewables,even more so as global coal,oil and gas
prices spike,” he said.