The Government’s Energy Market Intervention Is Already Working to Ease Household Costs

Must Read

The treasurer has declared that the government’s intervention in the energy market mitigates household costs.

Last December, a new plan was unveiled to combat rising energy costs across the east coast. This proposal included setting maximum price caps on gas and coal prices to provide some financial relief for consumers.

Our plan is designed to take some of the edge off these energy price rises, and we’re really encouraged to see that’s the case,” Mr Chalmers said.

Recent Treasury analysis demonstrates that the electricity price increases previously anticipated for 2023 have substantially decreased since the government declared its market intervention. 

Research of ASX futures data shows a remarkable drop in wholesale prices – a 41% decline in NSW, a 46% dip in Queensland, a 34% reduction in Victoria and a 48% plunge in South Australia between February and November when compared with the pre-price caps announcement.

Mr Chalmers stated that while he cannot be sure when electricity prices will stop rising, the plan shows “auspicious” signs of success over this year.

Last week, the Reserve Bank raised interest rates for an impressive ninth time to 3.35 per cent as inflation continues to rise beyond expectations. 

Treasurer Jim Chalmers noted that inflation is currently the most pressing issue facing Australia’s economy – reaching a 32-year peak of 7.8 per cent – thereby making it necessary for such measures to be taken.

“It’s a very difficult time for Australians dealing with these cost-of-living pressures, which are coming at us from around the world but being felt around the kitchen tables of this country,” Mr Chalmers said.

“That’s why the primary focus of our economic plan is a combination of three things: cost-of-living relief where it doesn’t add to inflation, dealing with the issues in our supply chains, including our workforce issues that we inherited, and, thirdly, showing some spending restraint in a responsible budget.” Mr Chalmers added. 

Despite rising interest rates, the federal treasurer has confidently dismissed worries that the nation may be heading into an economic downturn.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img