He said the government wanted input to help it review the impacts of the cap on the coal industry and electricity market, and understand the likely impact on domestic coal and electricity prices when the cap finished.

The government will also consider “potential alternative policy options” to minimise the impacts on electricity bills once the cap expires as well as “understand the effects of a possible new coal royalty rate system, or adjusting existing royalty rates, to respond to market conditions”.

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“In the lead up to the budget, we are focused on helping families with the cost of living, funding essential services and repairing the budget position,” Mookhey said.

“The NSW government will consider all options to keep electricity bills down as we approach the end of the coal price cap on 1 July 2024.”

Last year when Premier Chris Minns was opposition leader, he supported the temporary cap on coal, but stressed the state needed to develop long-term measures to address energy affordability.

A policy he took to the election was the establishment of the NSW Energy Security Corporation, a publicly owned company to accelerate investment in renewables, in a major policy shift designed to secure a permanent dispatchable supply of clean power.

The consultation with stakeholders will include face-to-face meetings as well as written submissions. The input will be used to help shape the government’s priorities in the second half of the year, Mookhey said.

The current system will remain unchanged until the expiration of the coal cap.

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