Glenn Lazarus (Queensland, Independent) Share this | Link to this | Hansard source

I move:

That the Senate—

(a) notes the rising cost of electricity for consumers across Australia, and the resultant financial pressures being placed on Australian households and businesses;

(b) acknowledges That the Australian Energy Regulator (AER) is currently negotiating with power network companies to determine electricity pricing for the next 5 years in Queensland and South Australia;

(c) expresses concern at the suggestion that electricity costs may double in Queensland, and rise significantly in other states, in response to attempts by power network companies to exaggerate financing, operating and investment costs at the expense of households, small business, irrigators and industry;

(d) calls on the Government to review the role of the AER in regulating Australian energy markets and networks and the extent to which the AER is promoting outcomes that are in the short and long term interests of consumers; and

(e) urges the Government to proactively ensure That the AER has the appropriate resources, authority and charter to negotiate electricity arrangements, which appropriately and fairly take into account the interests of consumers.

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Glenn Lazarus (Queensland, Independent) Share this | Link to this | Hansard source

The price of electricity in this country is extremely high compared to other countries. In fact, the price of electricity is increasing significantly every year. Not only are Australians finding it hard to pay their electricity bills but power costs are hampering business growth. The people of Australia are at the mercy of greedy, profit-driven power companies. The Australian Electricity Regulator is supposed to be managing pricing and looking out for the best interests of Australians, but all we are seeing is soaring power prices. In Queensland, the Queensland government owned electricity companies are fighting their regulator to increase pricing, which may double the cost of electricity for Queenslanders over the next five years. The rubbish must stop and something must be done. This motion calls on the government to act. We need to start putting consumers first.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

The government does not oppose this motion, but I would like to clarify a few issues. The AER has issued draft determinations that will reduce electricity prices in New South Wales, the ACT, South Australia and Queensland. The determinations are now being challenged by certain power network companies. The AER is a statutory authority and its decisions are subject to judicial review by the Federal Court and not by the government. The AER is not negotiating, and does not negotiate, its determinations. However, we note that in recent years the AER has been provided with new rules and tools, and we believe that these changes are now starting to deliver. The government also notes that the AER has been subject to two reviews in the past year: first, the Harper competition policy review recommended that the functions of the AER be rolled into the new access and pricing regulator; and, second, this year the COAG Energy Council is reviewing the governance of the national electricity market, including the government's arrangements of energy market bodies such as the AER. The government will consider these reviews and respond in due course.

I welcome Senator Lazarus's concern about high electricity prices and I look forward to him supporting the government opposing higher RETs and carbon taxes, which will increase electricity prices in this country.

Question agreed to.