❓ The Minister for Energy assures the house that WA has stable electricity supply and low prices due to Labor policies, contrasting it with the east coast's energy crisis and criticising the Liberal Party's past proposals.
AnsweredQoN 379Legislative Assembly
QuestionView source ↗
ELECTRICITY SUPPLY
379. Dr J. KRISHNAN to the Minister for Energy:
I refer to the energy crisis on the
east coast.
(1) Can the
minister outline to the house how the McGowan Labor government is ensuring
there are no supply issues in Western Australia and that the price of
electricity remains low?
(2) Can the minister advise how
this will benefit those moving to Western Australia from other states?
379. Dr J. KRISHNAN to the Minister for Energy:
I refer to the energy crisis on the
east coast.
(1) Can the
minister outline to the house how the McGowan Labor government is ensuring
there are no supply issues in Western Australia and that the price of
electricity remains low?
(2) Can the minister advise how
this will benefit those moving to Western Australia from other states?
AnswerView source ↗
I thank the member for Riverton
very much for the question. It is an excellent question from the excellent
member for Riverton.
(1)–(2) I feel sorry for our friends on the east coast
because they are going through a very difficult period of energy supply.
As I commented yesterday, the Australian Energy Market Operator shut down the
operations of the wholesale electricity market on the east coast and is now
running the system on direct command and control.
That is because the entire basis of their energy market has been a failure. The
reason we have a stable energy system here in Western Australia is that
we did three things that the Liberal Party always resisted. We put a domestic gas obligation on our export
projects. The Liberal Party opposed that. I remember Ian Macfarlane's
comments at the time. The next thing we did was put in a capacity market to
support having sufficient generation in the electricity system. This was
opposed by the Liberal Party. Every day that they were in government, they
opposed it. They went on about how it was a waste of money and that they wanted
to move to have national regulation in Western Australia. In fact, the Liberal
Party presented to the Parliament, and passed through this chamber, legislation
that would have abolished the separate regulation of Western Australia's
energy sector and would have put the entire energy system in Western Australia
under the control of the east coast. WA would have had the same rules applying
that have led to the chaos on the east
coast. The third thing we have done is to stop privatisation. That has been a major effort of the Labor Party. One of the reasons we were so successful in
2017 was that we resisted the Liberal Party's crazy privatisation
plans.
Another
reason that we have stable electricity prices in Western Australia is that we
resisted the Liberal Party's plan at the 2021 election. This
time I am not talking about its crazy renewables policy that could not have worked; I am talking about its plan to let the
private sector cherrypick the best customers from Synergy and leave
Synergy with all the high-cost customers. It would have completely undermined the tariff equalisation scheme—the uniform
tariff that keeps energy prices for regional Western Australians low. I will quote Dan Mercer in an article on ABC
online of 8 June headed ''Eastern states' energy ministers urged to look to WA for solutions to energy crisis'', which states —
In Western Australia, in fact,
experts say consumers are enjoying some of the most stable and low-priced energy
in the developed world.
Do members want me to read that
again?
Several members interjected.
Mr W.J. JOHNSTON : It states —
In Western Australia, in fact,
experts say consumers are enjoying some of the most stable and low-priced
energy in the developed world.
This year the government will give
a $400 rebate to electricity consumers, meaning that the amount they pay for
electricity will go down, not up. On the east coast, the default market offers
are going up by 14, 15 and 18 per cent because
of the chaos there. Two retailers have already stopped functioning; seven
retailers are on watch; and one retailer has written to 70 000 customers saying
''leave us''. That is the system members opposite wanted to have
here. They went to the 2021 election wanting to have mad competition that would
have driven up prices and created instability in the grid. New South Wales does
not even have electricity tonight; they do not know whether they will get
through the night without power being cut off deliberately. This is not because
of the mechanical breakdown of the system, but because they do not have enough
electricity. One of the benefits people would get by moving to WA is they could
buy energy from Synergy and Horizon Power and know that it will be stably
priced and will get to their home and be available when they need it. That is
because Labor governments have made the right decisions. Another benefit that
people could get if they moved from the east coast to WA is low-priced and
stably priced electricity.
very much for the question. It is an excellent question from the excellent
member for Riverton.
(1)–(2) I feel sorry for our friends on the east coast
because they are going through a very difficult period of energy supply.
As I commented yesterday, the Australian Energy Market Operator shut down the
operations of the wholesale electricity market on the east coast and is now
running the system on direct command and control.
That is because the entire basis of their energy market has been a failure. The
reason we have a stable energy system here in Western Australia is that
we did three things that the Liberal Party always resisted. We put a domestic gas obligation on our export
projects. The Liberal Party opposed that. I remember Ian Macfarlane's
comments at the time. The next thing we did was put in a capacity market to
support having sufficient generation in the electricity system. This was
opposed by the Liberal Party. Every day that they were in government, they
opposed it. They went on about how it was a waste of money and that they wanted
to move to have national regulation in Western Australia. In fact, the Liberal
Party presented to the Parliament, and passed through this chamber, legislation
that would have abolished the separate regulation of Western Australia's
energy sector and would have put the entire energy system in Western Australia
under the control of the east coast. WA would have had the same rules applying
that have led to the chaos on the east
coast. The third thing we have done is to stop privatisation. That has been a major effort of the Labor Party. One of the reasons we were so successful in
2017 was that we resisted the Liberal Party's crazy privatisation
plans.
Another
reason that we have stable electricity prices in Western Australia is that we
resisted the Liberal Party's plan at the 2021 election. This
time I am not talking about its crazy renewables policy that could not have worked; I am talking about its plan to let the
private sector cherrypick the best customers from Synergy and leave
Synergy with all the high-cost customers. It would have completely undermined the tariff equalisation scheme—the uniform
tariff that keeps energy prices for regional Western Australians low. I will quote Dan Mercer in an article on ABC
online of 8 June headed ''Eastern states' energy ministers urged to look to WA for solutions to energy crisis'', which states —
In Western Australia, in fact,
experts say consumers are enjoying some of the most stable and low-priced energy
in the developed world.
Do members want me to read that
again?
Several members interjected.
Mr W.J. JOHNSTON : It states —
In Western Australia, in fact,
experts say consumers are enjoying some of the most stable and low-priced
energy in the developed world.
This year the government will give
a $400 rebate to electricity consumers, meaning that the amount they pay for
electricity will go down, not up. On the east coast, the default market offers
are going up by 14, 15 and 18 per cent because
of the chaos there. Two retailers have already stopped functioning; seven
retailers are on watch; and one retailer has written to 70 000 customers saying
''leave us''. That is the system members opposite wanted to have
here. They went to the 2021 election wanting to have mad competition that would
have driven up prices and created instability in the grid. New South Wales does
not even have electricity tonight; they do not know whether they will get
through the night without power being cut off deliberately. This is not because
of the mechanical breakdown of the system, but because they do not have enough
electricity. One of the benefits people would get by moving to WA is they could
buy energy from Synergy and Horizon Power and know that it will be stably
priced and will get to their home and be available when they need it. That is
because Labor governments have made the right decisions. Another benefit that
people could get if they moved from the east coast to WA is low-priced and
stably priced electricity.
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