Steve Georganas (Adelaide, Australian Labor Party) Share this | Hansard source

I'm pleased to be standing here to support the Competition and Consumer Amendment (Australian Energy Regulator Separation) Bill 2025, which will establish the Australian Energy Regulator, AER, as a standalone entity. It will be completely separate and fully independent from the Australian Competition and Consumer Commission, or the ACCC, and the Commonwealth. This is not the first time that this bill has been introduced. In 2024, a similar bill passed the House; however, it failed to pass the Senate before the end of the parliamentary term and is now long overdue. We must not allow a reform like this to falter again.

This bill is essential for Australia's continued growth and progress. The AER has long outgrown its parent body, the ACCC. When it was established in 2005, the AER operated with just 15 employees and a budget of $6.5 million. Today, the AER requires approximately 400 employees to meet its dramatically expanded responsibilities as Australia's energy landscape evolves with the rise of renewables and our commitment to net zero carbon emissions, expanding the AER's role significantly. The change that you see quite bluntly here is the 400 employees compared to 15 back in 2005.

The AER is the cornerstone of consumer protection and market regulation in an increasingly complex energy environment. Although the AER and ACCC currently have separate regulatory functions, the ACCC still retains authority over the AER's funding and staffing and is responsible for governing and setting the AER's strategic direction. In contrast the AER has its own independent board, which is ultimately accountable for operations. This arrangement is no longer fit for purpose. The separation of the AER and ACCC is long, long overdue, and we have recognised that the current governance structure limits the AER's potential as an independent energy regulator. The AER will be empowered to resolve longstanding governance issues, take full control of funding and personnel and strengthen its accountability.

This is not a rushed decision. As you heard earlier, it went through this House prior to the last election but didn't get through the Senate. But this bill has been recommended by a number of public reviews, such as the 2015 Review of Governance Arrangements for Australian Energy Markets, the 2017 Independent Review into the Future Security of the National Electricity Market, and the 2020 independent review of the Energy Security Board.

Australia's energy markets are undergoing rapid transformation to accommodate cheaper and renewable energy like solar and many other forms. As we move towards net zero emissions, our energy market must be agile, transparent and responsive. The AER's independence will allow it to better support integration of renewables, manage grid stability and ensure that consumers are not left behind in transition. Governance structures matter when regulatory bodies are entangled with border agencies. Accountability can be diluted. By granting the AER full independence, what we're doing is streamlining its operations and reinforcing something very important: public trust in its decisions.

This bill will benefit the Australian public by enabling the AER to focus on and respond to energy consumer needs with greater clarity on energy security, reliability and affordability. The AER plays a vital role in the Australian energy market. It monitors compliance, with market rules and performance, and it regulates the electricity and gas networks by setting the maximum amount of revenue businesses can earn from the consumer—ultimately, keeping a tab on what they can earn. The AER standardises the wholesale and retail energy markets, to protect consumers from exploitation.

The bill will amend the Competition and Consumer Act 2010 to legally separate the Australian Energy Regulator from the Australian Competition and Consumer Commission. The AER will no longer be a Commonwealth entity and will gain full operational control over its own staff, resources, governance arrangements and regulations. Importantly, the role of the AER will remain unchanged. The Australian Energy Market Agreement, the national energy laws which provide the AER with detail obligations and functions, will continue to apply.

The need for this bill reflects the energy reality in Australia. We have all faced increases in electricity bills—individuals and businesses—and this growing energy insecurity reflects upon a growing economic insecurity for all of us. This government must strengthen our electricity market and provide the AER with its independence to take the initiative to act in the public interest. The rise of electricity prices is of course a major point for all of us—businesses, families and industries. Many Australians are doing it tough with the cost of living, and it's our duty as a government to help alleviate that burden.

This bill is a small but significant step on a long journey for Australia's sustainable future. The bill is an act to make the energy market fairer and prevent retailers from overcharging customers. Recent data by the ACCC shows that 80 per cent of households could be paying less for electricity. This is a statistic that must improve. The AER, with full independence, can ensure that everyday Australians are not taken advantage of and that they can trust that their government is working for them. In these challenging times, our electricity markets must prioritise the welfare of Australian consumers. Times are tough, as I said earlier. The only way to get out of this cost-of-living spike is to band together—industries, businesses and families alike. We need to support each other rather than focus on maximising profit at the expense of ethics and fairness. The AER separated from the ACCC is the superhero we need. The AER can finally manage its growing regulatory responsibilities effectively and efficiently, free from government constraints. It is a start. It's the beginning of reducing electricity prices and supporting households.

The AER's purpose is to ensure energy consumers are better off now and in the future. Affordable and reliable energy is vital to our national economy. It supports productivity in industry, agriculture, manufacturing and the backbone of this nation, small businesses. These sectors depend on the accessibility of a stable national electricity grid. All of us will be able to witness the benefit of this bill that separates the AER. In my own electorate of Adelaide, many constituents have come to me to raise issues and to ask me for assistance in combating their rising electricity bills. Correspondence I received recently from an elderly couple in my electorate comes to mind. They had received a 4.7 per cent increase in their electricity bill. It has impacted them so much that they, like so many others, have recognised that electricity is becoming a luxury item. The air conditioners and heaters that help households combat the wild temperatures that we face here in Australia are becoming very expensive to operate, and families are left to face the rising costs. An elderly female constituent in my electorate wrote to me to say that the government needs to do something to help the increasing number of people in her community struggling to pay their energy bills. Australians who are renting, who already face the reality of their rent rising, do not need to worry about their energy prices increasing as well.

We, as the Australian government and as representatives of our constituents, must speak openly about these realities and ensure that we're doing something about them. This bill is more than just the separation of an electricity regulator. It's about protecting Australian households and ensuring that they are safe. It's about preserving the Australian dream of living a life of fairness and comfort. No Australian should fear that their quarterly electricity bills will be unaffordable.

Let us also remember that this reform is not happening in isolation. It's part of a broader national strategy to modernise our energy systems, support the transition to renewables and ensure that no Australian is left behind. The AER's independence will allow it to better support innovation in energy markets, including battery storage, demand response and community energy projects. It will also enable more agile responses to emerging technologies and consumer trends, ensuring our regulatory framework keeps pace with the future.

Energy insecurity is not just a household issue; it's a national economic concern. Small businesses, hospitals, manufacturing, aged-care facilities and schools are all affected by rising energy costs. A stronger AER means better oversight, fairer pricing and, ultimately, a more resilient economy. It means fewer disruptions, more reliable service and greater confidence in our energy infrastructure. We must also consider the long-term economic benefits. A well-regulated energy market fosters investor confidence, encourages competition and drives down prices. It ensures that infrastructure investments are made wisely and that consumers reap the benefit of technological advancements. It also helps Australia remain competitive globally, as energy affordability is a key factor in attracting and retaining industry.

This bill lays the foundation for a future where energy regulation is proactive, not reactive; where consumers are empowered, not exploited; and where Australia leads the way in building a fair, affordable and sustainable energy system. In five or 10 years, I hope we can look back on the moment of this bill as the turning point where we empowered the AER to lead with clarity, independence and purpose—when we chose to put consumers first and build a more resilient energy future.

If we don't do this, if this bill is not passed, there'll be negative impacts. If the bill's not passed, the AER and the ACCC will remain a single Commonwealth entity under the finance law. The AER Board would continue to have the powers required to fulfil its regulatory role; however, it would not give those with the regulatory responsibilities authoritative control over the resources and people needed to undertake that work. There would continue to be dual ministerial responsibilities for the AER's activities, and, in accordance with the Administrative Arrangements Order, the Minister for Climate Change and Energy would continue to have portfolio responsibilities for the AER while the Treasurer would be responsible under finance law because the AER would remain a constituent part of the ACCC, a non-corporate Commonwealth entity within the Treasury portfolio.

It's important that this bill is passed; it's important that we support it. As I said, we are empowering the AER to lead with clarity, independence and purpose and to ensure that we build a fairer and more resilient energy future, ensuring that consumers are protected—not just household consumers but small businesses and industry—which then supports our economy. I commend this bill to the House.

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