Shares in Origin Energy (ASX:ORG) dropped big time today following doubts the $18.4B proposed takeover of the company will get across the line as the Federal Government seeks to introduce a radical new legislation.

The laws would allow the government to determine gas prices, heavily regulating the price of all sales on the east coast, and industry leaders fear the policy risks gas shortages and blackouts.

Last month Brookfield Asset Management offered to acquire all the shares in the electricity and gas supplier for $9.00 per share, and is currently undertaking due diligence.

The proposed legislation, with price caps on domestic gas and coal next year, and then controlled prices for gas thereafter, will be introduced to parliament on Thursday.