Claire Clutterham (Sturt, Australian Labor Party) Share this | Hansard source

I rise today to speak in support of the Competition and Consumer Amendment (Australian Energy Regulator Separation) Bill 2025. This is important legislation to separate the Australian Competition and Consumer Commission from the Australian Energy Regulator. While this legislation is technical in nature, for households and businesses in my electorate of Sturt this reform is about something more real: lowering power bills, providing more reliable energy and laying the foundations for a stronger future. This Albanese Labor government is getting on with the job of delivering real energy relief and real reform of the energy market. That's why this legislation matters. It's being conducted in parallel with sustained efforts to transition our economy to renewable energy and bring down power bills for all Australians.

The Australian Energy Regulator has a big job. It regulates energy networks and wholesale and retail markets in Australia to ensure that they are secure, reliable and affordable for consumers. It sets the rules for our electricity and gas markets, making sure companies play fair and consumers get the best deal. But it's been tied to the Australian Competition and Consumer Commission, an organisation with responsibilities that span the entire economy, and that model has held back the Australian Energy Regulator's independence and focus.

With the needs of consumers at the top of its list of priorities, the Australian Energy Regulator is one of three major market bodies that oversee national electricity and gas markets in Australia: firstly, the Australian Energy Market Commission, which develops the rules by which the markets operate; secondly, the Australian Energy Market Operator, which manages the day-to-day operations of the markets; and then, thirdly, the Australian Energy Regulator, which monitors performance and compliance with the rules.

Since its inception in 2005, the environment in which the Australian Energy Regulator operates has significantly expanded, as has its remit and functions. In the 2005 financial year, the Australian Energy Regulator had 15 employees and an annual program budget of $6½ million. This is significantly less than what the data tells us about the 2024 financial year, which recorded 400 employees and an annual program budget of $95.67 million. Increased responsibility, increased resources and increased budget accountability mean that governance arrangements need to be re-examined to ensure that they are fit for purpose.

The separation of the Australian Energy Regulator from the Australian Competition and Consumer Commission addresses these governance issues in two critical ways: firstly, by aligning responsibility for the regulatory functions of the Australian Energy Regulator as the independent energy regulator; and, secondly, by prescribing influential control over the Australian Energy Regulator's employees and funding, which is currently within the sphere of the ACCC. Further, without this legislation, the Australian Competition and Consumer Commission chair would retain technical responsibility for the Australian Energy Regulator's leadership, governance and strategic direction in circumstances where it is in fact the Australian Energy Regulator's independent board that is ultimately accountable for those things. This disconnect between responsibility and accountability does not represent good governance, and good governance in energy market regulation is critical in circumstances where Australia's energy markets are embarking on a significant period of transition.

In terms of the mechanics of the legislation, it will amend the Competition and Consumer Act 2010 to legally separate the AER from the ACCC, enabling the Australian Energy Regulator to have operational control of its own governance arrangements, its own resources and its own staff. In further technical terms, for the purposes of the Public Governance, Performance and Accountability Act 2013, the legislation establishes the Australian Energy Regulator as a non-corporate Commonwealth entity that is separate from the ACCC for the purposes of that act but as a non-corporate Commonwealth entity not legally separate from the government. Importantly, this legislation does not change the role, obligations and function of the Australian Energy Regulator as the independent energy regulator. That is not being changed by this legislation.

Without the passage of this legislation the following issues would remain. Firstly, the Australian Energy Regulator and Australian Competition and Consumer Commission would remain as a single Commonwealth entity under finance law, with the Australian Energy Regulator Board continuing to have the powers required to fulfil its regulatory role but no authoritative control over the resources and people needed to carry out that important regulatory work. Secondly, the dual ministerial responsibility would continue with respect to the activities of the Australian Energy Regulator. Thirdly, the fundamental disconnect between traditional governance of the Australian Energy Regulator employees, led by the Australian Consumer and Competition Commission, and the organisational strategy and direction, led by the board of the AER, would continue, exacerbating the governance risks to both entities and increasing the probability that inefficient and often duplicative governance processes would have to be undertaken to manage that risk.

So this straightforward and minimalist legislation resets that improves the governance environment without altering the primary objectives of the Australian Energy Regulator, which is the monitoring of compliance, with rules applicable to the energy markets, to the benefit of all Australian consumers. With this legislation, we give the Australian Energy Regulator the independence and the authority it needs to meet the challenges of our time. Make no mistake: these challenges are huge. We are in the middle of the most significant transformation of our energy sector since electricity was first switched on in Australia: the transition away from dirty, unreliable, ageing coal to renewable energy. This transition to renewables is not optional; it is essential. It is essential for our planet and for households struggling with rising prices. It is essential for businesses that want certainty to invest. Above all, I say again, it is essential if we are serious about tackling climate change.

In my electorate of Sturt, I've seen how deeply my community care about our future. I recently met with the Electrify Adelaide group. This is a passionate group of local people who are dedicated to advancing climate action by encouraging households to electrify and switch from fossil fuels. They understand that electrification means not only lower emissions but also cheaper, healthier homes.

I've also met with Catherine, Cathy and Andrea in my electorate. They formed Grandmas for Climate Action. These women are motivated by the most profound concern: the future of their children and grandchildren. They are asking, 'What type of planet are we leaving for future generations?' Their voices are powerful reminders that climate change is not an abstract policy debate. It's about the kind of country and the kind of planet that we will hand down to the next generation. It's not based on ideology; it is based on science and data.

I am proud that my home state of South Australia is already leading the world in decarbonising its energy sector. In almost two decades in South Australia we have gone from a total reliance on fossil fuels to a grid where around 80 per cent of our electricity comes from renewable sources, with wind and solar being the primary contributors. In South Australia, we really are leading the way. We are on track to reach 100 per cent net renewable energy by 2027, with billions invested in large-scale renewables and more in the pipeline.

Recently, the 412-megawatt Goyder South wind farm in Burra in South Australia's regions was opened. It's the largest in the state, with 75 turbines boosting wind generation by more than 20 per cent and powering homes and businesses including BHP, which will draw power from the Goyder wind farm. It is forecast to produce roughly 1.5 terawatt hours of renewable energy each year.

And then in South Australia today, as of 4 pm, the Australian Energy Market Operator fuel mix dashboard showed that 13 per cent of our energy was being generated by solar and 82 per cent was being generated by wind. We know that generation costs of wind energy and solar energy are next to zero. We know that the more renewables there are in the system, the less we need to depend on unreliable, dirty, coal fired power. This will provide additional cost relief on energy bills when more renewables come into the grid. Our pathway to 100 per cent net renewable energy by 2027 in South Australia is something that I am proud of. It is an extraordinary achievement that I hope to see replicated across this great country.

South Australia also leads the nation in rooftop solar, and my electorate of Sturt ranks second in the country for the uptake of the Albanese Labor government's Cheaper Home Batteries Program. Last week, we cracked 1,600, so thousands of families in Campbelltown, in Magill, in Glynde, in St Peters and in Rostrevor are generating their own clean energy, driving down their bills and contributing to a more sustainable energy grid, driving down bills for everyone.

And then we have our community battery in Sturt, an initiative that I'll continue to speak about and champion. Based at Tuku Wirra Reserve in Magill, this community battery provides energy to multiple low-income SA Housing Trust tenants in Magill and the surrounding suburbs. This is giving them access to electricity stored in the community battery through South Australia's Virtual Power Plant. The battery stores excess renewable energy from the grid when it is abundant for use at later times when demand and the cost is high. By doing this as part of South Australia's Virtual Power Plant, it delivers renewable energy and the cheapest residential electricity rate in South Australia. It delivers this to families doing it tough—to eligible low-income houses who need power prices to be dropping. Since it came online, the data shows us that it has driven down annual power prices for those families by an average of $562.

The approach of the Albanese Labor government is clear. We believe in cheaper energy bills, we believe in cleaner energy led by renewables and we believe in strong regulation. It is not one or the other; it is all of these things together. The legislation to separate the Australian Energy Regulator from the Australian Competition and Consumer Commission is part of that framework. It strengthens independence, it builds public trust and it ensures energy policy is a priority. The people of Sturt and the people of Australia deserve an energy regulator that works for them, for households, for businesses and for a cleaner and more affordable future. I commend the bill to the House.

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