Australia’s prime minister on Monday asked the state governments with the country's largest coal export market implement “ceiling prices” in an effort to reduce rising energy prices, local media reported.
Ahead of a Cabinet meeting this Wednesday, Anthony Albanese said imposing caps on the cost of coal and gas would probably mean paying compensation to producers, the Sydney Morning Herald newspaper reported.
Speaking to Adelaide radio, he stressed that the government is considering intervening in the gas market but that it is also necessary to intervene in the coal market to bring down electricity prices and not disrupt the market.
The states of New South Wales, Queensland, and South Australia opposed this proposal, demanding that the Albanese government provide guarantees that the ceiling price policy will never happen.
The state authorities underscored that putting a ceiling price on coal and natural gas may require compensation to producers, and if there is a loss of royalties, they will ask the government to compensate for this loss.
Albanese has promised to discuss the compensation issue with state leaders ahead of the Cabinet meeting.
According to senior government officials, no decision has been made on the issue, and the Albanese government is not yet considering recalling the federal parliament before 2023 to pass legislation needed to implement the changes.
According to government data, Australia has the second-largest export market in the world for coal.
