House debates

Wednesday, 1 March 2017

Adjournment

Electricity Infrastructure

7:34 pm

Photo of Tony PasinTony Pasin (Barker, Liberal Party) Share this | Hansard source

I spoke in this place in November of last year about the energy crisis facing my home state of South Australia in the wake of what was a devastating, state-wide blackout that not only affected 1.7 million households but had serious financial consequences for many of our state's largest employers.

Today, I rise to speak again on this topic—this time in the wake of what we have seen, namely a blackout per month since. Most recently, February's power outage in South Australia yet again highlights the serious and urgent challenges facing the South Australian electricity network. This latest incident is yet another example of SA Labor's failed energy policy experiment. South Australia, sadly, has become a national laughing stock when it comes to this energy policy. The South Australian Labor government is pursuing a 50 per cent renewable energy target, and it has compromised South Australians' access to affordable and reliable power. By relying so heavily on intermittent sources of power, particularly wind, our state is left vulnerable during periods of peak demand like today.

I will speak more about today in a minute, but on 8 February, South Australia had insufficient electricity generation as wind was only supplying 2.5 per cent of the scheduled demand due to low winds. The wholesale electricity spot price, which had been averaging around $100 a megawatt hour this financial year, reached a whopping $14,000 a megawatt hour on that day. Indeed, on that day, South Australians paid an average, over 24 hours, of $2,099 a megawatt hour. This compares, Mr Speaker, with your Victorian constituents, who paid an average of $135.80 for the same power generated at the same plant on the same day.

I said I would speak more about today. Today was a warm day in South Australia and, low and behold, at 3.25 this afternoon, prices for electricity on the spot market again reached $14,000 a megawatt hour. At the very same time, effectively for the very same electricity, Tasmanians paid $113, Victorians paid $122 and New South Welshmen paid $117, as did our friends in Queensland.

This is playing directly into the question of jobs, employment and inward investment in my state. A local restaurant owner contacted me today to tell me that his electricity bills in January 2017 have more than doubled since January 2016. He operates two restaurants in my electorate. His bill for January 2016 in each of the restaurants was roughly $7,000. The bill he has just received in January 2017 saw those electricity costs increase to over $15,000. That is an increase over the 12 months of roughly $180,000 across the two stores. He immediately equated that for me to effectively four or so full-time staff. And one wonders why South Australia suffers the highest rate of unemployment, particularly youth unemployment, in the country! These dots line up directly.

It is high time that the South Australian state Labor government recognises that these highly reckless renewable energy targets put energy security and affordability at risk. It is not good enough. It is not good enough for businesses that rely on power to operate, to employ people and to earn export dollars. The detriment to the sustainability of the South Australian economy is hard to fathom. Indeed, it is hard to put up with the constant barbs in this place asking whether the lights are on at home.

This is, however, not just an economic issue. It is a serious matter of public health and safety. For the elderly and the young, enduring high temperatures with no access to air conditioning can not only be distressing but be fatal. The South Australian state Labor government needs to give up its ideological obsession with green power to ensure that South Australia's energy mix meets the needs of hardworking, everyday South Australians. Mr Speaker, if that means building a low-emitting, high-efficiency coal powered station in your state of Victoria in the Latrobe Valley then, quite frankly, we have to get on with it. My constituents cannot afford to keep paying $14,000 a megawatt hour.

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