Federal and state energy ministers have reached an agreement to cap gas at $12 a gigajoule and coal at $125 a tonne for 12 months, as part of a plan to curb rising energy prices.
The government will also provide $1.5 billion for energy bill relief measures, which will be paid for by state and governments.
While gas companies have taken aim at the plan, Bowen said retailers did not need to charge “ridiculous” prices.
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“For anyone to argue that they need to make more than $12 a gigajoule is just ridiculous, and I don’t think that argument is going to hold any water,” Bowen told Sky News in an interview on Sunday.
“This is Australian gas under Australian soil and Australians should pay a a fair price for that, but they shouldn’t be paying a wartime price leading to very high profits for a few companies and endangering industries right around the country.”
Gas retailers will also be subject to a mandatory code of conduct under the deal struck between the federal government and state and territory leaders.
The ACCC will also be given additional powers under the changes to monitor and to enforce the code for retailers.
Modelling for the plan has shown the average household would be $230 better off once the gas and coal price caps come into effect, with further savings expected once the energy bill relief measures begin.
Opposition energy spokesperson Ted O’Brien criticised the plan, saying it would have a “disastrous effect on the industry over the longer term”.
While the opposition said they welcomed any energy bill relief for households and businesses, O’Brien said more detail was needed on how the measures would deliver lower prices.
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“They’ve had six months to come together with a package and all we see today is a cobbling together of manic thought bubbles presented as one comprehensive package,” he said.
“The Australian people know we’ll be here again next year, with higher prices and probably a higher risk of blackouts.”
Cabinet will convene on Thursday to pass the new gas and coal caps.
