Key Points
- Climate and energy minister Chris Bowen said pulling the gas trigger is "not a short-term solution"
- Also, he says the gas supply guarantee mechanism is "already showing improvement"
The government will do whatever it can to help ease the cost of energy as supply issues cause price spikes, Chris Bowen said.
The newly appointed climate and energy minister told reporters energy markets were facing a "geopolitical situation around the world".
"We are facing some coal-fired power closure station outages and some flooding impacts on coal mines and an array of other factors."
However, he said the government had "full confidence" in the Australian Energy Market Operator (AEMO).
"Action is necessary and action is being taken," he said.
Mr Bowen said he had spoken to state energy ministers on Thursday morning, and intended to convene a meeting of the ministers early next week in order to be advised by AEMO and the Australian Energy Regulator (AER) on the current supply situation and further actions.
"The Albanese Labor government will take whatever action is necessary to ensure ongoing reliability and affordability for the energy markets ... based on expert advice.
"The situation is serious but it is being managed by our regulators professionally and it is important that Australians know that the new government has confidence in our regulators in AEMO and in the Australian Energy Regulator to take the necessary action and to advise governments accordingly."
"They are world-class regulators and Australians should and can have confidence in them."
Gas trigger 'not a short-term answer'
Mr Bowen also addressed the prospect of pulling the government's 'gas trigger', enacting the Australian Domestic Gas Reservation Mechanism to shore up domestic supply.
Since winning the election, the government has faced questions over the mechanism - with some suggesting it should be pulled - but has not committed to pulling the trigger.
"I have seen commentary saying (the gas trigger) should be pulled today to deal with the short-term crisis ... with respect, that is a misunderstanding of how the mechanism works or would work," Mr Bowen said.
"It cannot come into force until 1 January next year, even if it was pulled today. It is not a short-term answer. There is a process outlined under law of consultation which would have to occur before it could be implemented; it is a supply trigger not a price trigger."
No 'quick fix' for energy crisis, Treasurer Jim Chalmers says
Earlier, Treasurer Jim Chalmers said while there is no quick fix when it comes to rising energy costs, the medium-term solution is an effective energy policy.
Mr Chalmers appeared on ABC's RN Breakfast on Thursday, where he was questioned about energy prices and the cost of living.
He said challenges in the energy market were the "most pressing" aspect of the cost of living crisis in Australia.
"We’ve been upfront with people before and after the election that there’s a cost of living crisis in this country and the most pressing element of that now is these challenges in the energy market … putting extreme pressure on industry but also on households right around Australia," he said.
Mr Chalmers said while the economy is growing, the challenges were also increasing.
"We have high and rising inflation feeding through into rising interest rates, falling wages, and our ability to deal with that is constrained by the fact that there is more than $1 trillion of debt in the budget we have inherited," he said.
"I want to be upfront and honest with the Australian people, there is no use pretending away these challenges or tip-toeing around them."
"We've got a serious set of economic conditions which we've inherited from our predecessors, (which we) have to acknowledge if we're going to work together to address them."
"I will always acknowledge the things that are going well and the difficult parts in the economy."
Mr Chalmers will unveil his first budget in October, which he says will make childcare and medicine cheaper, start to implement plans for cleaner and cheaper energy, and to "get real wages moving again".
