Household electricity bills are set to skyrocket over the next year.

A report by the McKell Institute is warning households could be paying up to $430 more for electricity by the end of 2019.

The solution? Bring wholesale gas prices back under control.

Chris Smith speaks with Minister for Environment and Energy Josh Frydenberg about the findings.

“This is a dodgy report based on dodgy assumptions.

“It is not the reality of what is happening with electricity prices today, or into the future.”

Mr Frydenberg also comments on Bill Shorten’s refusal to rule out nationalising the energy grid.

Listen to the full interview below