Households struggling with rising power bills will have relief, with the prime minister promising to crack down on energy companies that don't pass on massive profits to customers.
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Anthony Albanese says his government is working towards a solution for Australians with the power companies.
But that doesn't mean he's not prepared to take action against unfair behaviour.
"We know there has been substantial increases in profits at the same time as families and businesses are hurting from the increased charges and that is why we want to work for a solution as a matter of priority," he told reporters on the Sunshine Coast on Friday.
"We want this to be co-operative but that shouldn't be read as (though) we're not prepared to take action if the energy suppliers are not prepared to co-operate here."
Opposition Leader Peter Dutton said the government was only offering "thought-bubbles" while families were hurting.
A Greens proposal to save households more than $700 on their electricity bills has been rejected by Deputy Prime Minister Richard Marles.
Modelling for the Greens carried out by the Parliamentary Budget Office has shown a windfall tax on coal and gas companies would allow for electricity bills to be frozen for two years at pre-Ukraine invasion costs.
The modelling showed the median household saving would be $776.
Under the proposed plan, retail electricity bills would be frozen at the same rates as those before February 2022, with the windfall tax making up the difference.
But Mr Marles said he didn't think the Greens' plan would drive down power prices beyond gas.
He said the government was pushing forward to get renewable energy sources into the grid which would be the cheapest form of power in the future.
"We're not pretending that's going to happen overnight but we are working on this in the short-term, the medium-term and in the long-term to make sure we get an answer," Mr Marles told ABC radio on Friday.
Greens leader Adam Bandt proposed the measure to help more people deal with rising living costs.
"We're in a crisis and instead of asking everyday people to pay more, Labor should freeze power bills and put a windfall tax on coal and gas corporations," he said.
"With these greedy power companies paying the difference on electricity bills, prices are frozen for households but won't hold back investment in the clean energy generation we urgently need to get prices down."
Mr Marles said the government was in talks with gas companies to find a way to help households.
But he wouldn't be drawn on whether significant profits should be passed on as customer savings.
"Ultimately we need to be, as we are, getting people around the table to try and get short-term answers as best we can to try and get downward pressure," he said.
The budget office costing for the Greens was based on analysis on the national electricity market by the consumer watchdog, with projections bills will rise by more than 50 per cent in the next two years.
Mr Bandt said the windfall tax would freeze power bills and raise more than $25 billion.
He said the additional funds would help cover other costs should electricity bills rise further or household grants to transition away from gas.
Australian Associated Press
