Premier Annastacia Palaszczuk has warned the federal government she will not sacrifice energy rebates enjoyed by Queenslanders amid preparations for Commonwealth intervention to curb power price rises nationally.
Prime Minister Anthony Albanese's cabinet is set to go ahead with a new strategy to limit power price rises across the country after the federal budget forecast two years of rising household energy bills.
The government is currently working out the details of how gas prices can be be capped, and crafting a policy that may include subsidies.
However, Queensland's premier told state parliament on Tuesday that Queensland was doing the "heavy lifting" when it came to gas production and she would seek compensation if the Commonwealth intervened in supply.
"Let me say very clearly to the federal government, hands off our generators," Ms Palaszczuk said.
"There is no way that Queensland is going to sacrifice those returns (rebates) that we are able to provide back to Queenslanders.
"Queensland is always doing the heavy lifting and we need to make sure that if there are any, any steps by the Commonwealth in this direction that Queenslanders are fully compensated."
Ms Palaszczuk suggested NSW and Victoria could "open up some of their gas fields" to curb supply issues in the south.
Earlier on Tuesday, Federal Resources Minister Madeleine King said the government was considering capping gas prices as part of an overall policy to drive down electricity prices.
The government was in discussions with the states and territories over the policy, she said.
"Price capping is but one option and that is why ... the government needs to be very considered on this and very precise in its response.
In the recent budget, Treasury forecast retail power prices would rise 20 per cent by late 2022 and another 30 per cent in 2023/24.
Gas prices are forecast to rise by 44 per cent during the same period.
