Tim Ayres (NSW, Australian Labor Party) | Link to this | Hansard source

My question is to the Minister representing the Minister for Energy and Emissions Reduction, Senator Birmingham. Analysis from JPMorgan shows that, under the Morrison government's energy crisis, power prices continue to go up and up and up. Can the minister confirm that electricity prices have risen across the four national electricity market states of Victoria, South Australia, New South Wales and Queensland up to $83 per megawatt hour in August, up 12 per cent from June, despite lower demand?

Simon Birmingham (SA, Liberal Party, Minister for Trade, Tourism and Investment) | Link to this | Hansard source

I thank the senator for his question. Our government has been working across a range of fronts to ensure that energy prices are contained and come down. What we've seen is that there are emerging signs in some quarters of price relief in terms of consumers being able to access lower energy prices. Consumers, of course, who find themselves on default plans now find that, without question, they are in a position to enjoy better deals as a result of the reforms that this government has put in place. The reforms we've put in place in relation to the gouging that has occurred in terms of the gold plating of infrastructure and the like are, again, about keeping prices as low as possible into the future. These reforms across the board, whether they relate of to retail, generation or transmission—

Scott Ryan (President) | Link to this | Hansard source

Order. Senator Ayres, on a point of order.

Tim Ayres (NSW, Australian Labor Party) | Link to this | Hansard source

Relevance: I was hoping that the Minister representing the Minister for Energy and Emissions Reduction would answer the question.

Scott Ryan (President) | Link to this | Hansard source

I can't instruct the minister how to answer a question. I believe the minister is being directly relevant if he's talking about prices because that was the nature of your question, Senator Ayres. I can't instruct him as to the content or how to answer it. Senator Birmingham.

Simon Birmingham (SA, Liberal Party, Minister for Trade, Tourism and Investment) | Link to this | Hansard source

The reality is that we found and encountered prices that were absolutely escalating far too high far too quickly, hurting households and businesses across the country. The actions we've taken—whether it's generation reforms to encourage new generation to put stability into the grid in terms of both generation and prices, to reform transmission, to change market rules and to stop gouging we've seen in transmission or, in particular, the retail reforms that ensure Australians don't get pushed onto default contracts that are unfair and that take advantage of those who are most vulnerable—are benefitting Australians and will continue to provide price relief in terms of the type of increases experienced in the past not being repeated again in the future.

Scott Ryan (President) | Link to this | Hansard source

Senator Ayres, a supplementary question?

Tim Ayres (NSW, Australian Labor Party) | Link to this | Hansard source

Can the minister confirm that forward prices are 29 per cent higher than a year ago, averaging $94 a megawatt hour? Why are they so much more?

Simon Birmingham (SA, Liberal Party, Minister for Trade, Tourism and Investment) | Link to this | Hansard source

I don't accept the data that the senator is quoting there, particularly when you look at the retail prices that consumers and businesses are paying, and the contracts that consumers and businesses are able to access. Ultimately, what matters here is what people pay on their electricity bill. And the electricity bills for Australians are improving, relative to where they would have been, thanks to the reforms of our government, which are ensuring that people have more transparent choice and better default conditions and ensuring that the energy market operates more effectively as a result of these reforms.

Scott Ryan (President) | Link to this | Hansard source

Senator Ayres, a final supplementary question?

Tim Ayres (NSW, Australian Labor Party) | Link to this | Hansard source

Why is the government engaging in smug, self-congratulation when Australian families are struggling with electricity prices higher than ever before?

Simon Birmingham (SA, Liberal Party, Minister for Trade, Tourism and Investment) | Link to this | Hansard source

If you look at, for example, those most vulnerable Australians who find themselves on default market schemes, those Australians are estimated to be $190 better off as a result of reforms to the way the default market schemes operate.

Senator Wong interjecting—

Now, Senator Wong may not like that fact, but of course she was quite happy to sit there and ignore those consumers who slipped onto default schemes previously and found themselves being ripped off. This government took the action to reform the way the retail energy market works and to ensure that there is accountability there in terms of the prices those households are offered. Estimates show—in the early days—that households are $190 better off as a result of those reforms—just those reforms in the default market—

Senator Wong interjecting—

Senator Wong wants, of course, to be there with gratuitous advice in the interim because they did nothing—

Scott Ryan (President) | Link to this | Hansard source

Order, Senators Wong and Birmingham. Senator Cormann.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source

As much as I enjoy the continued disorderly interjections from Senator Wong, I ask that further questions be placed on the Notice Paper.