Dutton’s Gas Plan Offered to Lower Power Bills, Expected by 2026

Federal Opposition Leader Peter Dutton has introduced new modeling to support his proposed East Coast Gas Reservation policy, indicating it may lower household electricity costs by around 3 percent by 2026.

The analysis, carried out by Frontier Economics and unveiled almost two weeks after the initial announcement of the plan, coincided with the first leaders’ debate in the federal election campaign.

As per the modeling, wholesale gas prices could drop from approximately $14 per gigajoule to $10, driven by a mandatory diversion of up to 100 petajoules of gas from export markets into the domestic supply, thereby increasing local availability by 10–20 percent.

This would be enforced through a newly implemented “gas security charge,” with the aim of stabilizing local supply and protecting Australian consumers from fluctuations in international markets.

“We possess some of the most abundant gas reserves globally—it’s about time we tap into those resources to lower prices, safeguard jobs, and power Australia,” Dutton stated during the debate.

“By compelling gas companies to allocate more of our Australian gas to our market instead of exporting it, we can decrease gas prices by 15 percent.”

Dutton’s Gas Plan: Infrastructure Boost, Supply Expansion

Key measures include a $300 million Strategic Basin Plan to expedite the development of new supply, encompassing projects in Beetaloo and Narrabri.

An additional $1 billion fund will be established to construct crucial infrastructure that transports gas to high-demand regions.

The Coalition also vows to shorten approval timeframes, implement “use it or lose it” regulations for inactive offshore gas titles, and defund the Environmental Defenders Office, which it alleges has impeded development.

As part of the plan, gas will be added to the Capacity Investment Scheme to ensure dependable gas-fired electricity generation.

Dutton’s team is convinced that these collective endeavors will bring down wholesale energy prices by 8 percent, reduce industrial gas bills by 15 percent, and lower household gas bills by 7 percent.

“Gas contributes to the creation of steel and bricks, and will assist the construction sector, where we are currently facing significant cost inflation. It will also help lower prices for farmers, manufacturers, and producers,” Dutton remarked.

Labor Labels It ‘Gaslighting’ Policy

Although the Coalition makes bold assertions, it acknowledges that the benefits won’t be immediate.

The party’s energy spokesperson, Ted O’Brien, confirmed that consumers would have to wait at least 12 months from the policy’s implementation to notice bill reductions, as the plan’s effects flow through long-term contracts and legislation.

“Once the impact trickles down via contracts, by the end of the initial 12-month period, industries and households should start feeling the impact,” he informed ABC Radio.

However, the timing hinges on legislation passing through parliament—a process that will commence only if the Coalition emerges victorious in the May 3 federal election.

Prime Minister Anthony Albanese dismissed the policy, stating that the only gas policy they have is one of “gaslighting the Australian public.”

Labor’s campaign spokesperson, Jason Clare, went a step further, denouncing the announcement as a “distraction” engineered to divert attention from the Coalition’s pricier nuclear energy proposal.

“This is snake oil… I wouldn’t characterize it as modeling. I’d call it 125 words of assumptions,” Clare expressed. “It’s devised to divert focus from what could potentially be the most expensive policy ever put forth in an election—nuclear reactors.”

Energy War to Define the Election?

Energy relief remains a pivotal theme in the campaign and dominated the leaders’ debate, with Dutton accusing Labor of reneging on its promise to slash power bills by $275.

Albanese retorted by asserting that if nuclear power were viable, the private sector would finance it.

“Instead, experts concur that it’s the most expensive new energy source,” he argued.

Albanese indicated that Labor’s strategy revolves around renewables supported by gas, hydro, and battery storage, with safeguards in place to secure local gas supply.

He challenged Dutton on his nuclear proposal, cautioning that it would necessitate $600 billion to cover just 4 percent of Australia’s power needs by the 2040s.

“What will you sacrifice to fund it?” he inquired, contending that private investors would steer clear of it because “it doesn’t add up.”

Dutton countered, branding the figure as dishonest and citing a CSIRO report suggesting costs would be closer to $120 billion.

“Our plan, evaluated independently by Frontier Economics, is 44 percent cheaper than Labor’s $600 billion renewables-only plan,” he claimed, pointing to countries like France and China where nuclear power plays a pivotal role—unlike Australia, where power bills continue to escalate.