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AAP
AAP
Politics
Andrew Brown and Maeve Bannister

Energy debate recall a stunt, Dutton says

Opposition Leader Peter Dutton has labelled the return of parliament to debate energy relief measures as just a stunt.

Federal parliament will be recalled on Thursday to debate plans to cap gas for 12 months at $12 a gigajoule, roll out bill relief for welfare recipients and place a temporary cap on coal of $125 a tonne.

The proposed laws would also set up mandatory "gas market codes" to regulate the supply and purchase of gas.

Mr Dutton said the coalition would support financial relief measures for energy bills but indicated efforts by the government to legislate the price caps were designed to cause political division.

"The prime minister is looking for a political wedge because we've been clear about our support of the money going to families who are suffering under this government with increased energy costs, particularly electricity and gas," he told reporters in Brisbane on Wednesday.

"Australians are not stupid. They see through these stunts. We want to see support for families and reduction in energy prices."

The government's energy plan will need the votes of either the coalition or the Greens plus one crossbencher to get the new laws through the Senate.

Greens leader Adam Bandt will push for a two-year freeze on power bills and support for businesses and households to replace gas appliances.

Mr Bandt said this could be funded by a windfall tax on coal and gas corporations.

"We want to see more money in people's pockets paid for by making the big coal and gas corporations pay their fair share of tax," he told reporters on Tuesday.

"We want to have some further discussions with the government about the level of support that's going to be provided to people because we're worried that people are going to wind up doing it tough."

Mr Bandt admitted negotiating did not mean everyone got what they wanted but he was hopeful his talks with the prime minister would result in positive changes to the proposal.

The opposition leader said efforts to have caps on prices would exacerbate issues in the energy market.

"We've been very clear in relation to the price cap that we don't support that because it's going to be the Australian consumers, both households and small businesses, who will end up paying higher electricity prices," he said.

"(Energy Minister Chris Bowen) should be sitting down and doing a deal so that we can get downward pressure on energy prices."

While parliament is looking at short-term solutions to the energy crisis, Resources Minister Madeleine King said a national gas reserve could also be considered as a longer-term option.

"Given the extraordinary state of the market at the moment, we have to look at all options," she told ABC Radio on Wednesday.

"It's certainly something we can look into. It is complicated to retrofit a reservation policy after we've had an LNG export industry in place for a number of years but that doesn't mean it's impossible."

Ms King is set to meet with LNG operators on Thursday to discuss a gas supply deal that would help prevent shortfalls on the east coast.

However, companies involved in the deal, including Shell, have said they would suspend involvement in the agreement in the wake of the government's energy plan.

The minister said she wasn't concerned by the decision from Shell.

"It's not a halt," she said.

"They've been very clear. They're just bringing it to a temporary stop while they understand what we're proposing to implement and I think that's reasonable."

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