Government faces challenges to get coal and gas price caps through parliament

The Greens have expressed concern about the federal government's energy relief package. Last week, National Cabinet agreed to impose price caps on coal and gas, as well as 1.5-billion-dollars in power bill relief. Parliament will be recalled on Thursday to pass the laws.

High voltage electricity transmission lines in NSW. Australia will cap coal and gas prices for a year in a bid to shave utility bills for households and businesses. Source: AAP / AAP

Last week, the National Cabinet agreed to cap the price of gas at twelve dollars a gigajoule and coal at one-hundred-and-twenty-five dollars a tonne for twelve months.

Energy companies have already stated it will only push prices up, which is an argument the Opposition is sympathetic to.

Ted O'Brien is the Coalition's spokesperson counterpart to Mr Bowen, and he relayed the industry's concerns.

"It is a monster in the making, because not only will it fail in the short term, but it is going to have a disastrous effect on the industry over the longer term because it kills supply."