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Australia will cap gas and coal prices in 2023 for households and businesses

Australia will introduce a temporary cap on gas prices at AUD12/GJ (US$8.1/GJ or US$3c/kWh) and on coal prices at AUD125/t (US$84.6/t) for a year in order to help households and businesses cope with soaring energy prices. The Australian government will also support coal producers whose costs exceed that figure. The gas price cap will apply to new wholesale gas sales by east coast producers and the coal price cap will apply to coal used in power generation.

The government has also agreed to provide an electricity bill assistance of up to AUD1.5bn (US$1bn) to Australian households and small businesses, starting from the second quarter of 2023.

In addition, the Australian Scheme will unlock around AUD10bn (US$6.8bn) of private and public sector investment in clean, dispatchable storage and generation to ensure reliable and affordable electricity supply and reduce exposure to high coal and gas prices over the medium and long term.

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