❓ The Minister for Energy provides an update on the Liberal-National government's electricity market review, highlighting past failures of the Labor Party's reforms and outlining current initiatives focused on efficiency, cost reduction, and renewable energy integration. The Minister urges bipartisan support for moving regulatory oversight to the Australian Economic Regulator (AER).
AnsweredQoN 632Legislative Assembly
QuestionView source ↗
ELECTRICITY MARKET REVIEW
632. Mr J. NORBERGER to the Minister for
Energy:
Can the minister please update the
house on the progress of the Liberal–National government's
electricity market review, and share what reforms have been made?
632. Mr J. NORBERGER to the Minister for
Energy:
Can the minister please update the
house on the progress of the Liberal–National government's
electricity market review, and share what reforms have been made?
AnswerView source ↗
I thank the member for the question.
As he will remember, when we became the government in 2008, we inherited a lot
of problems, including in the child protection system, but energy must have
been one of the worst. The Labor Party undertook reform—if it can be
called that—that, if anything, left the system as a basket case. When
we came into government, the previous government had noted that electricity
prices had to rise by 10 per cent a year. The whole purpose of the reform was
to reduce electricity prices and to stop the subsidy growing. As I said, what
has happened is that the electricity price has gone up by 70 or 80 per cent and
the subsidy per annum has gone up from $60 million to $450 million.
Mr
M. McGowan interjected.
The
SPEAKER : Leader of the Opposition!
Dr
M.D. NAHAN : Indeed, since 2009–10 we have put in $2.2 billion to
subsidise the consumption of electricity. That is the mark of a failed reform.
We have undertaken a whole series of reforms, every one of which, by the way,
they have resisted. We have put Synergy and Verve back together again. That has
helped them to concentrate on driving efficiencies in the system. Since we have
done that in the last two years and in the forward estimates, we have saved
just shy of a billion dollars in subsidies that would have been either borrowed
or otherwise.
Several members interjected.
The
SPEAKER : Member for Cannington, I call you to order for the third time.
Dr
M.D. NAHAN : We have also undertaken a raft of other reforms, including in
demand-side management, about which the shadow spokesman for energy first said,
''Take the assistance away.'' Now, after he visited the major
provider of demand-side management in Boston, he has come out and supported the
retention of demand‑side management and the high prices. I wonder why he
did that. He must have done a Sam Dastyari. He has done a 180-degree flip.
We have also done a whole range of
reforms, including driving major efficiencies in Synergy and Western Power.
Western Power reform should save every individual household $300 a year. That
is reform. If they were in government, we would have had another large debt.
The next series of reforms —
Mr
M. McGowan interjected.
The
SPEAKER : That is enough! Leader of the Opposition, I have been very lenient
on you.
Dr
M.D. NAHAN : He is trying to obscure his failure.
Several members interjected.
The
SPEAKER : Through the Chair, thank you.
Dr
M.D. NAHAN : He is trying to obscure failure.
The next reform, which is in a committee
in the upper house, the Legislative Council, is to move the regulatory regime
for electricity and gas to the Australian Economic Regulator. That is
absolutely vital and important. They are agnostic on it—at least the
shadow Minister for Energy is. It is vital for a range of reasons. As all local
members know, when a business tries to attach to Western Power's
network, there are large costs and large delays. It is particularly important
for renewable energy. The move to the AER will reduce the cost and red tape and
allow particularly renewable energy to attach to the grid significantly. The
people opposite want to move to a renewable energy–focused development,
but without going to the AER, it will not and cannot happen. I hope they
support that through the upper house. So far it has been stuck there. The head
of the committee should come out in two weeks' time. I hope they
support it through the committee. I trust they will support that through both
chambers of Parliament, because without it, all their cries or promises to move
to a renewable world will fall flat. It cannot be done without a move to the
AER.
We will undertake a range of other
reforms to the system. We will lay them out over the next three or four months.
That will show that we, unlike they, know how to reform the energy sector for
the benefit of consumers rather than being a cost to taxpayers.
As he will remember, when we became the government in 2008, we inherited a lot
of problems, including in the child protection system, but energy must have
been one of the worst. The Labor Party undertook reform—if it can be
called that—that, if anything, left the system as a basket case. When
we came into government, the previous government had noted that electricity
prices had to rise by 10 per cent a year. The whole purpose of the reform was
to reduce electricity prices and to stop the subsidy growing. As I said, what
has happened is that the electricity price has gone up by 70 or 80 per cent and
the subsidy per annum has gone up from $60 million to $450 million.
Mr
M. McGowan interjected.
The
SPEAKER : Leader of the Opposition!
Dr
M.D. NAHAN : Indeed, since 2009–10 we have put in $2.2 billion to
subsidise the consumption of electricity. That is the mark of a failed reform.
We have undertaken a whole series of reforms, every one of which, by the way,
they have resisted. We have put Synergy and Verve back together again. That has
helped them to concentrate on driving efficiencies in the system. Since we have
done that in the last two years and in the forward estimates, we have saved
just shy of a billion dollars in subsidies that would have been either borrowed
or otherwise.
Several members interjected.
The
SPEAKER : Member for Cannington, I call you to order for the third time.
Dr
M.D. NAHAN : We have also undertaken a raft of other reforms, including in
demand-side management, about which the shadow spokesman for energy first said,
''Take the assistance away.'' Now, after he visited the major
provider of demand-side management in Boston, he has come out and supported the
retention of demand‑side management and the high prices. I wonder why he
did that. He must have done a Sam Dastyari. He has done a 180-degree flip.
We have also done a whole range of
reforms, including driving major efficiencies in Synergy and Western Power.
Western Power reform should save every individual household $300 a year. That
is reform. If they were in government, we would have had another large debt.
The next series of reforms —
Mr
M. McGowan interjected.
The
SPEAKER : That is enough! Leader of the Opposition, I have been very lenient
on you.
Dr
M.D. NAHAN : He is trying to obscure his failure.
Several members interjected.
The
SPEAKER : Through the Chair, thank you.
Dr
M.D. NAHAN : He is trying to obscure failure.
The next reform, which is in a committee
in the upper house, the Legislative Council, is to move the regulatory regime
for electricity and gas to the Australian Economic Regulator. That is
absolutely vital and important. They are agnostic on it—at least the
shadow Minister for Energy is. It is vital for a range of reasons. As all local
members know, when a business tries to attach to Western Power's
network, there are large costs and large delays. It is particularly important
for renewable energy. The move to the AER will reduce the cost and red tape and
allow particularly renewable energy to attach to the grid significantly. The
people opposite want to move to a renewable energy–focused development,
but without going to the AER, it will not and cannot happen. I hope they
support that through the upper house. So far it has been stuck there. The head
of the committee should come out in two weeks' time. I hope they
support it through the committee. I trust they will support that through both
chambers of Parliament, because without it, all their cries or promises to move
to a renewable world will fall flat. It cannot be done without a move to the
AER.
We will undertake a range of other
reforms to the system. We will lay them out over the next three or four months.
That will show that we, unlike they, know how to reform the energy sector for
the benefit of consumers rather than being a cost to taxpayers.
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