Power is going to get a lot more expensive thanks to Albanese - Senate 21.11.22

The federal government’s bill to rein in soaring energy costs has passed just parliament, with measures to temporarily cap gas prices.

Labor have only locked in the wholesale price not the retail price. This will help retailers to buy more renewables which are made offshore and reduce baseload energy supply. The high end of the cost curve for gas is now $12 to produce, so producers will cut supply for any gas that costs more than this and withdraw new supply coming on due to the uncertainty around prices.

This will push up energy prices even more.