Robert Oakeshott (Lyne, Independent) Share this | Hansard source

I rise to not to talk about electricity prices, particularly in New South Wales and particularly on the mid-North Coast of New South Wales. There has been a lot of discussion at a community level around concerns over the last five years of record increases in electricity prices—up around a 70 per cent increase in prices over the past five years. It is a genuine issue of concern within the community. In relation to last week's New South Wales budget, on page 5.18 of the 2012-13 budget statement there is something that is of no comfort for those who have continued to see increases in electricity prices. Under dividends received by government under distribution and transmission there is a 2011-12 dividend of $639 million which is increased to $901 million in the 2012-13 year in the New South Wales budget. That is over a $250-million increase in the one year. On our rough estimates that is a 41 per cent increase over that one-year period. This is from a government in its second year who went to the ballot box in March 2011 promising to cut the dividends to the government from the distribution and transmission network and promising to do something about electricity prices. Sadly, that has not and does not look like occurring any time soon. Instead, we see the issue of the emissions trading scheme being loaded up to blame for all the evils of the extraordinary electricity price rises over the past five years.

Last week in New South Wales the Independent Pricing and Regulatory Tribunal, IPART, released figures showing that electricity prices, again, will rise by 18 per cent from 1 July. This is, as I have said before, an increase of 70 per cent over the past five to six years. IPART have confirmed that carbon pricing will account for only eight per cent of that 70 per cent increase and that the real culprit is poles and wires charges, which have gone up by more than 70 per cent over the last five years. IPART have made it crystal clear that network charges are up 70 per cent and that carbon adds just eight per cent. It is hard for all mid-North Coast residents and New South Wales residents as consumers to understand the intricacies of electricity prices. The various retail, network and green components make up the total price we pay, which makes it easy for some to blame a carbon price for electricity price rises, even when the regulator has shown that to be wrong.

There is one proven way to cut through all of this confusion and obfuscation. All we have to do is follow the money. If anyone doubts or denies that network charges are the real reason power prices are so high, then the New South Wales budget of last week has come to their rescue. We only have to look at that one line item at page 5.18 of the New South Wales budget statement for 2012-13 under dividends on distribution and transmission which shows that in its first year the O'Farrell government expected $579 million in dividends from its four state owned power network monopolies when it, in fact, received $639 million; $60 million more than it budgeted. This is in a climate when the election promises of the 2011 campaign to cap power network dividends was made and made strongly. That promise is in the document entitled, NSW Liberals & Nationals plan for an affordable & sustainable energy industry. On page 2 at point 4 it says, 'We will cap dividends at forecast levels.' That was the promise. That was the contract.

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