The federal government has stopped short of agreeing to provide compensation to states if an energy price cap is introduced. 

The NSW and Queensland governments have been critical of a proposed federal government plan to set price caps on coal in a bid to drive down power bills.

Suggestions of state-imposed caps were so unpopular with Premier Annastacia Palaszczuk, she insisted “any steps by the commonwealth in this direction” would need to come with compensation.

But despite an apparent lack of support from the state premiers and some prodding from Deborah Knight, Minister Ed Husic wouldn’t reveal where the federal government now stands.

Ed Husic: “You can be confident that we are very focused on this, we are looking at a range of options and we are determined to see those prices go down.”

Deborah Knight: “You are prepared to deliver compensation to the states to get this done?”

Ed Husic: “No, I’m saying that we’re going to work with them to address that.

“We have been working with them but I’m not saying by virtue of my answer in response to your question, I’m not giving you those points because we are working through with states about what needs to be done. But they-”

Deborah Knight: “Well the states are saying they’re not going to let it happen unless they get compensation. Simple as that.”

Press PLAY below to hear the exchange in full 

Image: Sam Mooy/Getty Images, Jono Searle/Getty Images