With gas prices expected to increase by 40 per cent during the next two years and retail electricity prices by 56 per cent, Jim Chalmers says all options are on the table to reduce power bills.
"We are contemplating the kinds of steps that governments wouldn't have contemplated a year or two ago," he said.
"You can go down the path of tax, you can go down the path of direct support to households, we don't want to rule out those kinds of options, but our immediate focus is on the regulatory side."
Dr Chalmers said he took seriously calls by former consumer watchdog head Rod Sims for gas prices to be capped. He indicated talks had taken place on other measures that could be introduced.
Among them was a mandatory code of conduct for gas companies, and while the code had been concerned with supply levels of gas, the treasurer said it could also extend to prices.
"We don't really want to limit our options or narrow our options," he said.
"There's a lot of working going on behind the scenes, a lot of consultation and collaboration, and if there's something sensible and responsible and meaningful we can do here, obviously, we will consider that."
NSW Liberal Treasurer Matt Kean voiced his support for any policy that would put downward pressure on prices but he wasn't convinced a gas price cap was the best solution.
"The window for price caps is very narrow and, in fact, we have to move before the end of the month if we want to see it have any difference," he told Sky News.
Mr Kean was also disappointed the Albanese government did not provide any energy bill relief in the budget, adding, "I hope they change their minds."
Before the election, Labor committed to lowering the average household power bill by $275 a year by 2025.
However, this is unlikely to be achieved due to volatility in energy markets caused by Russia's invasion of Ukraine.
"We are always recalibrating our expectations for electricity price rises," Dr Chalmers said.
Opposition frontbencher Michaelia Cash said shoring up further supply of gas was critical.
"All a price cap will do is actually discourage players from bringing on supply," she said.
Victorian Premier Daniel Andrews said rising energy prices and the war in Ukraine reinforced the need for a domestic gas reserve.
"What gas companies are asking us to do now is pay European prices for our gas," he told reporters.
"We need a national domestic reserve so that our gas is for our businesses and households first, and the bit that we don't need sell to the world."
Independent senator Jacqui Lambie also backed a gas reservation policy.
"We've seen what happens in Western Australia, where their prices are going up very little compared to the rest of Australia because of the gas reserve policy that they have out there," she said.
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