Baker Institute
The Guardian
Gas Price Cap Extended for 12 Months
Emergency Order Sets Price Ceiling of 12 Gigajoules
Extension and Review in Progress
The Competition and Consumer Gas Market Emergency Price Order 2022, an emergency measure introduced by the government, has been extended for 12 months. This order sets a price cap of 12 per gigajoule (GJ) on gas sold by gas retailers for a period of 12 months. The move is aimed at providing relief to consumers amidst rising gas prices.
The price cap has been set at 12GJ and is subject to a review commencing by 1 July 2025. This implies that the cap may be extended beyond the initial 12-month period. The government is also consulting on whether to further extend the cap for another 18 months.
The gas price cap, coupled with state government measures on coal prices, is expected to have a significant impact on energy costs for households and businesses. The government estimates that the combined measures could save consumers up to $230 per year on their energy bills.
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