Prime Minister Anthony Albanese is again being accused of misleading the public on energy policy after doubling down on his claim that renewables are the cheapest way to generate power.

The criticism follows Albanese’s insistence that the former Morrison government remains responsible for today’s soaring electricity bills, despite Labor having been in office for more than three years.

Anthony Albanese argued that the Coalition’s technology-agnostic stance on energy would send prices higher. “The Liberal-Coalition policy is friendless. There isn't an energy expert coming out and saying this, whatever it is, will work,” Albanese said.

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He maintained his position on renewables, stating: “I have been very clear about what the cheapest form of new energy is, in report after report after report. That's what the Capacity Investment Scheme is all based upon. Renewables, backed by gas, backed by storage, backed by hydro.”

Looks like taxpayers are on the hook for another $8 billion in energy rebates.

So far, Albanese has blown over $8 billion on rebates because the cheapest form of electricity is weather-dependent, Chinese-made solar and wind.

It's called socialism, and it's failed everywhere. pic.twitter.com/Yu4SF4Aee5

— Rob Smith (@Ausbobsmit) November 10, 2025

The Capacity Investment Scheme aims to channel around $70 billion into new energy projects by 2030 but is restricted to renewable generation and battery storage.

Liberal Senator Sarah Henderson sharply rejected Albanese’s remarks, accusing him of dishonesty during an interview with Sky News. “There are major consequences for this Prime Minister lying. Because the bottom line is with power prices, they are going through the roof,” Henderson said.

“We are calling out the Prime Minister's lies, and we are delivering an energy policy that is going to take us forward as a nation.”

The Coalition has put forward a “technology-neutral” energy plan aimed at preventing early shutdowns of coal-fired plants while also expanding domestic gas supply.

Henderson argued Labor’s push for a fully renewable grid has driven electricity prices up by as much as 40 per cent. “We are not going to turn our back on any form of energy in this country, particularly when we are a resources-rich country,” she said.

“We are blessed with so much gas and coal and uranium and critical minerals. And yes, renewables have a very strong place in our country. But we are not going to cop the Prime Minister's lies, and it is time the Labor government and this Prime Minister started to tell the truth.”

Electricity costs have surged sharply over the past two years, rising from $0.361/kWh in June 2023 to $0.389/kWh in June 2025 — a 7.63 per cent increase and well above inflation, according to iSelect.

Households in NSW experienced the steepest hikes of up to 9.7 per cent, with smaller increases in south-east Queensland and South Australia.

The federal government has extended its $300 annual bill rebate scheme until the end of 2025 but has not yet announced whether further support will follow.