Energy Minister Chris Bowen says the government isn’t going to allow Australian industries to fold in the wake of skyrocketing energy costs, while watering down claims of a “magical gas-led recovery” as a solution to cheaper bills.

Mr Bowen was spruiking almost $8 billion in joint federal and state funding for critical transmission and renewable energy zone projects in NSW that would plug Snowy 2.0 into the grid.

The projects are slated to provide long-term energy security and downward pressure on household bills in the short term.

Responding to criticism from the gas industry over the federal government’s cap on coal and gas prices, Mr Bowen said he didn’t accept they could charge “whatever they wanted” to make “mega profits” off the war in Ukraine.

“We will not allow mega profits for gas companies off the backs of Australian industry,” he told ABC radio.

“We would have seen Australian industries fold next year in the absence of government response, now we’re not going to let that happen.”

Mr Bowen said claims of a “magical gas-led recovery” as a solution to the energy crisis were “always a fraud”.

“What I’m focused on doing primarily is ensuring that the massive transition we need in the Australian energy market and Australian industrial producers to cheaper, cleaner energy is well managed,” he said.

NSW Energy Minister Matt Kean has defended his government’s legislation to cap the price of coal to help ease pressure off households managing soaring power bills.

“It wasn’t a jump at all to stand by people following the illegal war in Ukraine, which is pushing up electricity bills,” he told the ABC.

“The government is there to protect the people, not the other way around, and that’s exactly what we did.”

Mr Kean said the cap would be in place for 18 months, before it would be reviewed.

– AAP