The Prime Minister says he will consider electricity market intervention, with prices predicted to soar. 

Prime Minister Anthony Albanese says his government is giving “strong consideration” to intervening in energy markets in response to alarming budget forecasts for electricity and gas prices.

The latest forecasts predict electricity prices will increase by an average of 20 per cent by the end of 2022, and a further 30 per cent in the next financial year. 

This amounts to a possible 56 per cent increase in power prices over the next 18 months, with gas prices forecast to increase 44  per cent in the same period. 

Some have questioned how much the government is actually capable of doing, given the sources of the price rises. 

High international gas prices for liquefied natural gas (LNG) result in part from the ongoing war in Ukraine, allowing Australian LNG producers to get prices for their exports as much as four or five times previous levels.

“Intervention into the market … is something that we will give strong consideration to,” Mr Albanese told reporters after the figures were released. 

“We'll be taking the advice of the appropriate departments about an appropriate intervention. We understand the pressures that are on here.”

Economist Danielle Wood, chief executive of the Grattan Institute, has commented on the sobering energy price forecasts too. 

She said the government has to take more “meaningful action” to tackle those prices.

“They could move to tighten regulation of prices,” Ms Wood has told the ABC.

“That would be a big move.

“At the moment they have focused on trying to secure supply but price is the challenge here.

“The other thing they could do is follow the lead of some other countries and try and work on the taxation, particularly of super profits that are being earned while prices are very high around the world, and then return some of that to consumers by way of rebates.

“That would take the pressure off households, and it can be done in a way that won't add big inflationary pressures.”