Power relief plan presented to parliament

Debate has begun on the federal government's proposed energy relief measures as the coalition confirms it won't back the new laws.

Treasurer Jim Chalmers urged MPs to choose to help Australians who are being confronted with "unsustainable, unacceptable" energy price rises, by supporting the proposal. 

"Without intervention, next financial year retail gas prices are expected to increase by a further 20 per cent and electricity prices by a further 36 per cent," he told parliament. 

"That's why urgent action is needed."

Dr Chalmers said the government respected the role the gas industry played in Australia's economy but had a responsibility to find a solution to protect Australians from increasing power bills. 

The new laws propose to cap gas at $12 a gigajoule, introduce a mandatory code of conduct for the gas market and roll out power bill support for welfare recipients.

Labor has a majority in the lower house, and the Greens and independent senator David Pocock have confirmed they would side with the government in the Senate.

Opposition Leader Peter Dutton said the coalition backed relief measures but wouldn't back the bill as it did not want market intervention.

This was despite Australia's regulator suggesting mere talk of intervention is already driving market prices down.

Mr Dutton claimed the coalition only received the proposed legislation at 8.45pm on Wednesday - just 12 hours before it hit parliament - but the treasurer said they had been provided with a draft version last week. 

In exchange for the Greens' support, the government has agreed to an additional support package in next year's budget to help low-income households and businesses switch from gas to electricity.

But Australian Energy Regulator chair Clare Savage said energy contracts for next financial year were already heading in the right direction, allaying fears prices are set to skyrocket.

She said government modelling showing prices would be $230 less than expected was likely around the mark.

"Since the government started talking about intervention in fuel markets in the October budget, the cost of one of those contracts has already fallen about 45 to 50 per cent in NSW and Queensland," she told ABC Radio.

"If these markets keep trading as they are right now, we should see an increase next year that's much lower than what we'd originally feared."

The treasurer urged all MPs to be on the "right side" of solving the nation's energy woes.

"That's what this choice, this coming vote, really comes down to: higher power prices or lower power prices, relief on energy bills or no relief, protecting Australian industry and jobs or leaving (them) swinging in the breeze," he said.

"This bill is in the national interest for all Australians."