David Moncrieff (Hughes, Australian Labor Party) Share this | Hansard source

Our energy market is a cornerstone of Australia's economic infrastructure and a critical service for Australian consumers. It enables the transmission and distribution of electricity across vast distances, supporting industries, businesses and households with reliable power.

Australians expect to be able to have access to cheap, reliable power. They expect to be able to turn on the lights at night. They expect to be able to throw their leftovers in the fridge and have them still be cold the next day. They expect to be able to run their fans and air conditioners in the summertime. And they expect that their energy will power their healthcare devices. Reliability and stability are absolutely essential to our energy markets, and those are what this bill is aiming to achieve.

Stability in energy policy is not something that was achieved under the previous government. Was stability something that we expected from the Abbott-Truss-Turnbull-Truss-Turnbull-Joyce-Turnbull-Joyce—again—Turnbull-McCormack-Morrison-McCormack-Morrison-Joyce—yet again—government? No. But it was something that Australians desperately sought.

Those opposite do believe in climate change one minute; the next, they don't. They believe in reducing emissions one minute; the next, it's all too hard. They support a national energy guarantee one minute; they shelve it the next. One minute, Scott Morrison is talking about his plan to achieve net zero at the COP in Glasgow; the next, the Nationals are showing net zero support for the Liberal leadership. Just now, we have heard some appalling, unscientific scaremongering from the member for New England on this bill. Those opposite spent nine years in government, during which they could have formulated a plan to replace our ageing coal-fired power stations. They didn't come up with one. So, on this side of the chamber, the Albanese Labor government has had to spend the last 3½ years playing catch-up on energy policy to modernise our ageing system.

As I've said, Australians expect reliability in their power. That's why the work of the Australian Energy Regulator matters—not just to policymakers or economists, but to every Australian household, every small business and every community trying to keep the lights on and bills under control.

A key part of the stability and reliability of our network comes from the work of the Australian Energy Regulator, the AER. Now, the AER isn't one of the most high-profile parts of the federal government. You won't find many dinner party conversations that start with, 'So what do you think about the governance structure of the Australian Energy Regulator?' But its work in ensuring that Australian energy consumers are better off now, and will be into the future, is work in which Australians, including those in my electorate of Hughes, take significant interest.

In my electorate of Hughes, it's not an abstract idea. In 2023-24, Ausgrid customers in Bangor used 15,535 megawatt-hours of electricity. In Ingleburn, our industrial sites needs significant energy supply to keep our economy moving. Family-run local businesses, like Valley Kebab in Ingleburn Town Centre, just want predictable power bills. To the electricians on the job in Barden Ridge and Wattle Grove, and tradies trying to finish work before dark, these decisions about our energy-system regulation have very real impact.

This legislation is a critical reform to ensure our national energy regulation framework retains its effective governance. It holds real benefits for the people of Hughes, our small businesses, our environment and our local communities.

When the AER was established in 2005, it was a small team of 15 people, working with a budget of just over $6.5 million. Today, it's a national regulator of nearly 400 people, managing a budget approaching $100 million. That's a transformation by any measure, and this government needs to respond to it. Over those two decades, Australia's energy sector has changed beyond recognition. We've seen the rise of renewables, new technologies like household batteries and community solar, and a grid under more pressure and with more complexity than ever before. Yet, despite that change, the governance structure for the AER hasn't caught up. The AER remains administratively tethered to the ACCC, even though its remit, its expertise and its accountability are entirely different. The current set-up is a bit like having your dentist working at an accounting firm: 'I'm sure he's well qualified to do the work, but why am I coming to the tax return place to get my teeth fixed?' This bill modernises the arrangements. It ensures the AER is equipped to handle the challenges ahead, because those challenges are significant.

Across my community, people are making decisions about rooftop solar, about household batteries and about how to use power, and they are relying on fair, consistent and transparent regulation. The AER plays a critical role in ensuring the electricity networks that serve our community, from substations in Engadine and Lucas Heights to the distribution lines that keep Sutherland businesses humming, are operating efficiently and charging consumers fairly. Every time an energy retailer wants to change its default market offer or a network seeks to adjust its prices, it's the AER that steps in to check those proposals against what's fair and reasonable. For households in suburbs like Engadine and Moorebank, where people are watching every dollar, those decisions matter. So, when we talk about giving the AER greater independence, we're really talking about strengthening the referee in the system. We are making sure the organisation that protects consumers can act quickly, decisively and without interference.

At present, there's a mismatch between responsibility and accountability. The AER Board is responsible for the regulatory decisions, yet the ACCC chair is legally accountable for the AER's finances and staffing. That's not just clunky; it's inefficient governance. It impairs its ability to hold others fully accountable if it doesn't control its own people and budget. The Vertigan review in 2015 said it clearly: the AER needs full management and financial autonomy to be effective. The Finkel review in 2017 agreed, and the Energy Security Board review in 2020 heard the same message from stakeholders across the energy market: independence matters. This bill finally delivers on that independence. This bill takes a measured and minimalist approach. We're not reinventing the wheel or setting up an entirely new agency with layers of bureaucracy; we're simply giving the AER its own legal footing as a non-corporate Commonwealth entity, separate from the ACCC under the Public Governance, Performance and Accountability Act 2013. It means the AER Board will now be the accountable authority and the AER chair will serve as the head of the agency under the Public Service Act 1999. Existing staff will transition smoothly with their conditions preserved under the ACCC enterprise agreement. Shared services, like human resources or information technology, can be purchased from the ACCC or third parties where that makes sense. It's practical, it's efficient, and it doesn't burden taxpayers with unnecessary duplication.

Independence is essential for the public to have full confidence in our regulators. I used to work for a regulator, and we really valued our independence in terms of making decisions that were going to affect our economy and entities. The AER makes tough calls every single day, regulating billion-dollar networks and deciding on price determinations that affect millions of Australians. If the public believe that the regulator is influenced by another body, even if it isn't, then public trust erodes in our institution. This bill gives the AER the independence it needs to do the job properly and the authority to manage its own destiny.

Our energy grid is going through the most significant transition since electrification itself, with renewable generation expanding regularly. In the Sydney region, this new grid infrastructure is being planned to support the transition to clean energy. Having an effective regulator like the AER under the changes this bill brings will ensure the investment in this transition is efficient and that the benefits flow directly to consumers. In my community, that means more stable, affordable and sustainable energy for our future; more local schools being able to install solar panels; and small manufacturers being able to upgrade their systems without breaking the bank. When residents see their bills spike, they don't want excuses. They want accountability. By empowering the AER, we can ensure that it can act faster and smarter and ultimately protect consumers better. Those opposite don't want to acknowledge the transition that is occurring in our energy market, but on this side of the House we are taking action to ensure that Australia is ready for a renewable energy future as our market continues to transition.

This bill has not come to parliament in a rushed fashion. Instead, it has been shaped through extensive consultation with federal government departments, the AER, the ACCC and state and territory ministers. In May 2023, all state and territory ministers actually agreed to the separation under the Australian Energy Market Agreement. This bill is the result of years of review, discussion and careful design, and it's about time. This bill will ensure the removal of duplication, streamline governance and ensure the AER can get on with the job that Australians expect, to protect consumers and ensure the reliability and affordability of energy. An empowered AER will better monitor retailers, enforce compliance and ensure the energy markets play by the rules. Given the coming decade of energy transition, it will be more vital than ever to have a regulator that's nimble, well resourced and independent, because the energy market will not wait for the government to catch up.

It is a key strength of this bill that the separation does not disrupt information sharing between the AER and the ACCC. It still allows collaboration on investigations or enforcement. The people of Hughes expect this place to keep their bills low and their lights on, and they also expect us to ensure that regulators are working efficiently and transparently.

This reform is part of the broader work of the Albanese Labor government of modernising these bodies, from payday superannuation reforms, which ensure fairness for workers, to the National Energy Transformation Partnership initiatives, which help coordinate investments across jurisdictions. This reform is practical. It's overdue. It puts consumers and the energy sector on the forefront of policy. It's part of the Albanese Labor government's commitment to ensuring that our economy benefits from the transitions that are taking place in the energy market. I commend this bill to the House.

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