GREG JENNETT: Months after deciding to cap soaring coal and gas prices, the Albanese Government's now completed the final details of how a bigger stick can be wielded against the massive gas exporters. A new mandatory gas code of conduct is coming, forcing these multinational companies to keep enough gas aside at a reasonable price for use by Australians, mainly up and down the east coast. Resources Minister Madeleine King joins us now. Welcome back, Madeleine. The promise right throughout, but particularly back in April, was to secure more gas at a reasonable price. So, in general, in a consumable fashion, what has been decided?

MINISTER MADELEINE KING: Thanks, Greg, it's good to be back here and thanks for having me along. Well, we have been working this for some time, no doubt about it. And I know you asked to go back to April, but I will just reflect that we started what we had to do in the gas market when we first got elected because of the sky-high prices that we're witnessing, combined with issues around supply led by weather events on the East Coast as well in terms of coal-fired power generation. So, that's where it started and then it's gone on from there. We secured gas through the heads of agreement, but what came to be was that prices still kept going out of control. So, we brought the price cap in and we pledged then to bring in a mandatory code of conduct, and that is what we have done. The design phase of that is finished now and we'll go on to finalise that within weeks and start to implement it. So, what that means is that the whole gas industry on the East Coast is engaged with this. There will be a code of conduct that will include exemptions to just parts of that code around pricing and arbitration, but only on the basis of there being commitments that are enforceable commitments to the ACCC and the courts on supply in terms of price and volume by those gas producers into the domestic market.

GREG JENNETT: Okay, so in refining this design, as you did with industry, what are your expectations about the uptake or the seeking of exemptions? How many will actually be forced to do anything under the code as against seeking and laying out the pathway towards an exemption?

MINISTER MADELEINE KING: Yeah, well, obviously there's different levels of gas production across different companies. So, the three exporters are the largest producers of gas and some of them will undoubtedly apply for these exemptions. And we've been in talks with them around what commitments and what supply commitments, as I said, in price and volume they can make, and that is ongoing work with the ACCC and Minister Bowen and myself will work with them to secure those commitments, which importantly guarantee that supply and guarantee it with enforceable undertakings as well.

GREG JENNETT: And what are some of the penalties or enforceable undertakings? What are the consequences if people fall foul of either the exemption rules or the code itself?

MINISTER MADELEINE KING: Well, there are large financial penalties that would apply if they don't supply that gas but I don't expect any of these companies would do that. We have engaged with them on a good faith basis and the same goes for when we engage with the three exporters on the voluntary heads of agreement and that will keep being important, the commitments beyond the ones they make under the mandatory code of conduct. So, there's a combination of things operating all at the same time with the real commitment of the Australian government to make sure there's adequate gas supply for the East Coast.

GREG JENNETT: Comparing the expectations of where future contracts might go over the next couple of years with the $12 price that you've set here. Has the government or has the industry estimated what the cost foregone might be by industry and complying with this?

MINISTER MADELEINE KING: I think not specifically, not that I've seen any advice on that. But what they have done is, I think, put their shoulder to the wheel to make sure they can make commitments. And the price cap provides a level of certainty both to consumers of gas, industrial and domestic through retail providers, but also certainty to the producers. And they need to have certainty for further investment. And that all combines to make sure we have greater supply, but also with that price anchor. So, we're not so susceptible to fluctuating gas prices which we have seen remarkably over the last twelve months but for how long?

GREG JENNETT: I think there's an initial period here. Why not let that conclude in a period of time? I think it's two years. Why do you create a mechanism that might let this roll on indefinitely?

MINISTER MADELEINE KING: Well, I think it's sensible to have a review period. And that's what we've had. We've said for the middle of 2025 to review the price cap itself, but also the whole of the code. And that's to make sure it's fit for purpose. Because what we know is that there's extreme volatility in the international gas market and it's simply the sensible thing to do to bake in that review so that we can assess it at the time. And obviously the ACCC and our AEMO, ourselves as Ministers and our departments will keep a watchful eye over this because we want the regulation we introduced to be fit for purpose and I am really pleased with the engagement the gas industry has participated in and they are supportive of us enacting this.

GREG JENNETT: You've obviously consulted them. I'm wondering about foreign governments which are interested in this, if not indirectly customers themselves. We know that they're nervous about interventions like this and you do too, because you've been in the audience at various gatherings where ambassadors and company executives have made this point. Did you consult or go back to governments again before settling this final design?

MINISTER MADELEINE KING: We always keep in touch with the governments that are the gas industry's clients, so to speak. And they're not just purchasers of this energy source, they're also long-term investors. So, it is capital investment from Japan and South Korea and Singapore that has led to the construction of this industry, which also is for the benefit of domestic supplies. So, we keep in touch with them pretty much all the time, and they are updated constantly on what the Government is thinking. And equally, these governments understand our need for energy security. So, just like they have their needs, and their needs rely a lot on Australia as an exporting nation of gas, and we really respect that. And we also acknowledge the importance of Australia's role in providing that energy security to our region and those international partners. So, we keep in touch with them on these policies, but also others, I might add.

GREG JENNETT: Okay. And so, finally, for consumers, I could ask you questions about big industrial users, of course, but let's bring it down to the householder, particularly on the East Coast of Australia. What certainty will this give them, that forecast price increases track along with those forecasts, we're not going to see the spikes we've seen?

MINISTER MADELEINE KING: You might have heard, and I appreciate not everyone watches Question Time, but Minister Bowen took the House, the Chamber, and all those watching through the fact that the anticipated price rises have been avoided by the actions of the Government so far. And we expect this to add to that stability in pricing and hopefully reduction, because that's certainly what we're going for. And as we bring on cleaner, cheaper energy sources, we expect those prices to go down.

GREG JENNETT: All right, well, we'll be monitoring, I'm sure, everyone else will too. Madeleine King, thanks so much for your time on that. Thank you.