Coalition's Gas Plan Promises Lower Energy Costs but Faces Legal and Supply Challenges
Peter Dutton's proposed domestic gas reservation policy aims to cut household and industrial energy bills, but experts warn of investment risks, constitutional hurdles, and uncertain timelines.
- The Coalition has released detailed modelling for its domestic gas reservation policy, projecting a 3% reduction in residential electricity bills, a 7% cut in household gas bills, and a 15% drop for industrial gas users.
- The plan involves forcing gas exporters to reserve 50-100 petajoules of gas annually for domestic use, aiming to lower wholesale gas prices from $14 to $10 per gigajoule.
- Contradictory statements from Coalition leaders have created confusion about when households and industries will see cost reductions, with timelines ranging from late 2025 to next year.
- Energy experts and industry groups caution that the policy could deter investment in gas production, exacerbate long-term supply issues, and potentially drive up prices instead of lowering them.
- Legal experts have raised constitutional concerns about the proposed export levy, questioning whether it could be classified as a discriminatory tax under Australian law.
SBS News 
The Guardian 
The Sydney Morning Herald 
9News 
Australian Broadcasting Corporation 