Elected Coalition government would create a $1 billion gas war chest, under plan to cut prices by 3pc

An elected Coalition government would create a $1 billion gas war chest to fast-track projects aimed at slashing household energy bills, with Peter Dutton unveiling plans to cut prices by 3 per cent.

The modelling behind the Coalition’s gas reservation policy was released while he was on stage at the Sky News leaders’ debate on Tuesday night. It was announced nearly two weeks ago.

New modelling revealed a suite of energy measures as part of the Coalition’s National Gas Plan — with the Opposition Leader claiming it will deliver cheaper and more reliable energy to Australian homes and businesses.

If successful at the May 3 poll, the Coalition has vowed to immediately introduce an East Coast Gas Reservation scheme, reinstate the National Gas Infrastructure Plan, and establish a $1 billion fund for critical gas infrastructure projects.

Mr Dutton said the plan would “cut red and green tape” to bring between 50 to 100 gas projects online within his first year in government.

The Coalition also intends to introduce “use it or lose it” provisions for offshore gas fields and fast-track a decision on WA’s North West Shelf project within 30 days — which he announced in the Perth seat of Curtin last month.

The East Coast Gas Reservation scheme is expected to deliver between 50 to 100 petajoules of additional gas to the domestic market in its first year — a boost equivalent to 10 to 20 per cent of current national demand.

Modelling by Frontier Economics suggests the Coalition’s gas plan would reduce wholesale gas prices by 23 per cent — from about $14 per gigajoule to below $10 — which would flow through to bills.

That includes a 7 per cent cut to household gas bills, helping ease the cost of heating, hot water and cooking.

Electricity bills for homes would fall by about 3 per cent, or about half the amount prices increased on the east coast in the past year alone — between 5.1 and 8.9 per cent.

For large energy users like manufacturers, the savings would be even greater, with a 15 per cent reduction in industrial gas bills — attributed to lower distribution and transmission costs.

The plan would also encourage long-term gas contracting by major users, accelerate investment in new supply through a $300 million Strategic Basin Plan, and defund the Environmental Defender’s Office, which the Coalition has labelled “discredited”.

The suite of measures, Mr Dutton argued, would safeguard Australia’s energy security while unlocking new supply and creating opportunities for smaller players to grow and compete.