Clive Palmer's demand for lower electricity prices in exchange for support to repeal the carbon tax can be met, Prime Minister Tony Abbott says.
Mr Palmer, whose Palmer United Party will hold three key Senate votes from July 1, says support for the repeal will be under the proviso that the savings "by law, are transferred into lower energy costs for everyday Australians".
"Only on these terms would we support repealing the carbon tax because of the benefits it would offer the people as well as the economy," Mr Palmer says.
Mr Abbott told reporters in America's energy capital Houston on Saturday the consumer watchdog would ensure power companies passed on the nine per cent cut to electricity bills and seven per cent gas bill saving.
This could be an average saving to a family of $550 a year.
"We can guarantee appropriate price reductions will be passed on," Mr Abbott said.
He said crossbench senators would understand the position when briefed on it soon.
The repeal bills could pass with the three PUP votes, Motoring Enthusiasts Party's Ricky Muir, the Liberal Democrats' David Leyonhjelm and Family First's Bob Day.
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