ENERGY PRICES

Mr HAMILTON-SMITH (Waite) (14:57): My question is again to the Minister for Energy. What regulatory arrangements has the government either put in place or agreed to, then, to protect households and small businesses from excessive distribution and network charges for gas?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Transport and Infrastructure, Minister for Mineral Resources and Energy, Minister for Housing and Urban Development) (14:57): The former Howard government introduced a series of protections under the Australian Energy Regulator through the ACCC. Those protections are in place and they are the ones who set the regulatory prices. To the best of my advice, I think that is working well. It was a good reform by former minister Macfarlane which has been re-endorsed by then minister Ferguson, and it has been maintained by minister Gary Gray.

The SCER operates exceptionally well trying to maintain a level of balance between investing in new gas projects, gas distribution and, of course, gas pricing. The unfortunate aspect for retailers and consumers in South Australia is that we do have an abundance of gas, but to get that gas out of the ground, there needs to be price point which makes it profitable for those companies to get it out of the ground.

I would like to think those price points are a bipartisan matter which we can work together on to make sure that we maintain the investment in the Cooper Basin by SANTOS, Senex, Beach and other retailers to keep on exploring and getting that gas out of the ground, to maintain our energy revolution that is going on right here in South Australia.

There will be some short-term pain because of what is happening in New South Wales and Queensland where exploration for gas is being restricted by those governments. This government, I think, has been working quite well with the former minister and the current shadow minister to try to maintain a bipartisan approach to gas exploration, to maintain the availability of acreage for those companies. We are doing what we can, but ultimately it is private investment that will get the gas out of the ground, not government investment.

I would caution members on both sides of the parliament who are looking for quick fixes like gas reservation policies. I am not making any accusations—just saying so. It is important that we do what we can to encourage investment in our gas fields in South Australia to make sure that we can get that gas out of the ground and flowing to export markets and to the eastern seaboard.