Greens secure household electrification and will back energy price cap bill

2022-12-14

The Greens have concluded negotiations with the government on its energy price cap plan and will support the passage of the government’s bill through the Parliament on Thursday.

Through negotiations with the government over the Competition and Consumer Amendment (Gas Prices) Bill 2022, the Greens have secured a substantial separate package of support in next year's Budget to roll out electrification to businesses and households, including helping low income households and renters cut power bills by getting off expensive and dirty gas.

It is estimated that households could save up to $1,900 per year by switching from gas appliances alone and up to $3,450 per year by fully electrifying.

In reaching agreement with the government on this measure, the Greens do not accept that the government’s proposed power bill relief is sufficient and the Greens will continue to press for more help to households via a two year electricity bill freeze as the government settles its final bill relief measures for low and middle income households early next year. 

The Greens will also not support any compensation to coal corporations, and have confirmed that any potential subsidies to coal generators and miners from the NSW government, possibly partially funded by the Commonwealth, will not be in the current legislation before the Federal Parliament and will be opposed by the Greens in any future legislation brought before the Federal or NSW Parliaments.

Lines attributable to Greens Leader Adam Bandt MP:
“This is a big win for households and the climate and another big blow to the greedy gas corporations," Mr Bandt said.

“By helping people get out from under the greedy energy corporations, the Greens are cutting people’s bills and cutting pollution.

“The gas corporations are on the ropes.

“Unfortunately, under Labor’s scheme power bills will still keep rising, so the Greens will keep pushing for a 2 year bill freeze instead so people have more cash in their pockets to meet the rising cost of living.

“The Greens will not support a single dollar going to coal corporations. The coal and gas corporations should be compensating the people, not the other way around. We will keep pushing for a windfall tax on the coal and gas corporations to fund a 2 year electricity bill freeze.

“The privatisation of our electricity and energy grid and Liberal and Labor’s gas export boom have led to this crisis, and until we bring our resources and essential services back into public hands and freeze people’s power bills, these greedy corporations will keep taking the country for a ride.”

Government Statement

Household and Business Electrification Package

In response to matters raised by the Australian Greens during discussions over the government’s energy price cap bill, as part of the 2023-24 Budget process the Albanese Labor Government will develop a significant package of measures to help households and businesses electrify their operations, improve their energy performance and cut energy bills.

Renewable electricity is both cheaper and cleaner – and can protect Australians from future global energy shocks. But households and businesses face a range of barriers to electrifying, including upfront costs and workforce and supply chain constraints.

Electrification will deliver significant additional energy cost savings to households and businesses, including for those without rooftop solar.

The Government will examine support that could be provided to households and businesses to electrify their space heating, water heating, cooking and other appliances and equipment.

The Government  will focus on households that most need support, such as low-income households, renters, public and community housing residents and apartment dwellers, given the additional barriers they face.

The Government will also take advice from experts such as ARENA and the CSIRO, and examine the potential for more research on how businesses, particularly small businesses, can electrify their operations.

The package will be developed in conjunction with the National Energy Performance Strategy, and will have scope to consider the role of technologies beyond electrification.
This commitment builds on the Government’s existing investments to help households and businesses electrify, such as community batteries, solar banks and the Powering the Regions Fund.

The Government will consult with the Australian Greens on development of the package.