David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training representing the Minister for the Environment and Energy, Senator Birmingham. Can the minister advise the Senate of how the Turnbull government is working to deliver a stable, reliable and affordable energy system?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I thank Senator Fawcett for his question and his ongoing commitment, which all members of our government have, to ensuring the stability, reliability and affordability of Australia's energy markets—guaranteeing, therefore, affordability and reliability for businesses across Australia to operate, and, of course, for households in tackling and dealing with their cost-of-living pressures.

We must simply ensure that the lights stay on for our businesses to continue to succeed in Australia and for jobs growth, which we have enjoyed in recent years, to be maintained and enhanced. We must also ensure that prices are tackled to help vulnerable Australians. That is why our government takes a technology-neutral, non-ideological approach to energy policy that is based on the economics and the engineering of the circumstances. That is why our focus is on affordability, to ensure that families and households are on the best possible energy deals around Australia. We know that around 50 per cent of Australian households have not moved retailers or changed contracts in the past five years, even though savings can be as high as $1,500 per annum for those households. That's why we are guaranteeing that some two million Australian households will get the information they need to be confident that they are on the plan best suited to their house to give them the lowest prices into the future.

Equally, we are taking action on stability and reliability. Our now generator reliability obligations ensure that intermittent sources of energy generation have offsetting sources that are reliable, with an appropriate level of back-up, to guard against blackouts in future. There are new requirements for large generators to give minimum three-year notice periods before closure, and we're seeing direct government action to work to ensure those large generators stay in the market as long as possible. There are tough new regulations in the gas sector, as well as abolishing the Limited Merits Review, which has been rorted by network systems, despite the fact that those opposite seem to want to play politics and delay our steps to abolish that Limited Merits Review. (Time expired)

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

Senator Fawcett, a supplementary question?

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Can the minister outline how Labor's energy policy failures continue to make energy less stable, less reliable and less affordable for Australian families and businesses, particularly in our home state of South Australia?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

It is very clear that those opposite simply don't get energy policy and they never have. We see it writ large, as I told the Senate earlier, in relation to the energy policies of the state and territory Labor governments. Mr Weatherill describes the South Australian energy market as a 'big experiment'. As Senator Fawcett knows, as I know and as other South Australians should know: it is a big experiment that has gone dangerously wrong in terms of reliability and affordability in SA. Yet, those opposite commit to similar policies, wanting to see a 50 per cent RET by 2030 and committing to 45 per cent emissions reductions targets by 2030, all of which go contrary to the detailed work our government has done to ensure sensible, affordable and achievable emissions targets. Then, when confronted with the AEMO report last week, what did Mr Shorten call it? He said it was a 'bit of a distraction'. A report that says there are risks of shortfall to baseload power in the future is just a 'bit of a distraction'? This is a demonstration that they just don't get it. (Time expired)

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

Senator Fawcett, a final supplementary question?

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Can the minister explain the importance of keeping baseload, dispatchable power in Australia's energy system?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

It is base-load power that anchors our energy system, that ensures that the energy needed by households and businesses gets there in a manner that is required, when it is required, at an affordable rate. AEMO's dispatchability report last week demonstrated that there are clear risks of shortages, and yet the Leader of the Opposition said that that was a matter for down the track. Well, it's not a matter for down the track. AEMO makes clear there are risks of shortages for this summer. They are seeking to contract 1,000 megawatts of additional generation for the coming summer. Indeed, there may be further risks down the track for which we must take action on now. For example, the scheduled closure of Liddell, which the AEMO report identified as a further potential shortfall of 1,000 megawatts in 2022. Again, this is why we are taking action now. The Prime Minister is taking action now, and we won't take the advice of those opposite who say it's just a bit of a distraction. We know that it is important and we will deliver the— (Time expired)