House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Question Time Energy Prices ENERGY PRICES Mr HAMILTON-SMITH House of Assembly Waite ENERGY PRICES Mr HAMILTON-SMITH (Waite) (17:12): My question is to the minister for energy. Why did he state publicly on 5 September that South Australian power prices had 'absolutely' gone down—a drop, he claimed, of from 9 per cent to 18 per cent in the last 12 months—when he had received a ministerial pricing report 2013 from the Essential Services Commission only a few days earlier which stated, to the contrary, that market offer prices (to which the vast majority of consumers are bound) had increased by 18.7 per cent from 1 July 2012 to 16 August 2013? The Hon. A. KOUTSANTONIS House of Assembly West Torrens Minister for Transport and Infrastructure Minister for Mineral Resources and Energy Minister for Housing and Urban Development ENERGY PRICES The Hon. A. KOUTSANTONIS (West Torrens—Minister for Transport and Infrastructure, Minister for Mineral Resources and Energy, Minister for Housing and Urban Development) (17:12): The part the member will not read in the ESCOSA report and the press release that accompanied it is: However, readers should take care in drawing firm conclusions on overall price movements based on this report— Did you say that part? Mr Hamilton-Smith House of Assembly Mr Hamilton-Smith: Does that mean they're not accurate? The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: That's right, yes; the covering note saying 'don't rely on this report'— Mr Hamilton-Smith interjecting: The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: No, I'm quoting them. Pay attention. I know you are not one to rush in and make statements that are not true, but I am just reading out a report from ESCOSA. It says: However, readers should take care in drawing firm conclusions on overall price movements based on this report, as it provides price information only on offers open to new customers and reports simple average prices. I know the member for Waite is new to this portfolio area, and I want to explain a few things to him. An honourable member House of Assembly An honourable member: You're just so experienced, Tom. How long were you on the bench? The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: On the backbench? I've been a minister longer than you have been. What are you—twelve weeks? The Speaker House of Assembly The SPEAKER: The minister will return to his text. The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: Sorry, sir. It is such a target-rich environment. Is that the terminology, 'target-rich environment'? Is that the term you would use? If the member for Waite had read the report, he would know from the first report into pricing highlights in table 2.1 on page 12 that the benchmark 5,000 kilowatts per year customer annual bill on the AGL standing contract was $1,985 as of 1 July 2012 and that it was $1,950 at 16 August 2013. The ESCOSA report also highlights that transitional customers that are on contracts that were agreed as part of the deregulation decision and received the 9.1 per cent discount due to deregulation are actually paying $1,849 as of 16 August 2013. That is on page 14 of the report, if you read it. Mr Hamilton-Smith House of Assembly Mr Hamilton-Smith: I've read it. The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: No, you haven't. If you had read it you wouldn't have got up here to embarrass yourself. With regard to the current best market offer, which energymadeeasy.gov.au would show you if you could use a computer, it is shown on table 2.7; it's in the report. Sir, 2.7 of the report highlights that on 16 August 2013 PowerDirect has an offer that would result in an annual bill, for the benchmark customer of 5,000 kilowatts per hour, of $1,534. There are savings due to deregulation. The report is not accurate; ESCOSA says so itself, but to try to be deliberately misleading, to try to deliberately mislead the public, the member for Waite has been saying that power prices have gone up— Mr Hamilton-Smith interjecting: The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: I'm not accusing you of misleading the parliament, just the public. The Speaker House of Assembly The SPEAKER: The minister will withdraw that imputation. The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: I'm sorry, sir; I won't say 'mislead'. What the member for Waite is peddling is snake oil. Mr PISONI House of Assembly Mr PISONI: Point of order, sir. You have asked him to withdraw and he did not do that. The Speaker House of Assembly The SPEAKER: Perhaps he did so so swiftly I didn't see it. Minister, perhaps you— The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: If I have hurt his feelings I apologise again. The Speaker House of Assembly The SPEAKER: Thank you. Mr Hamilton-Smith interjecting: The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: Then why do you complain so much? Mr Hamilton-Smith interjecting: The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: Okay. Mr PISONI House of Assembly Mr PISONI: Point of order: he did not withdraw; he simply apologised. The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: Sir, I know I'm hurting his feelings; I apologise and withdraw. Do you feel better? The Speaker House of Assembly The SPEAKER: Good; apology and withdrawal, there it is. Minister. The Hon. A. KOUTSANTONIS House of Assembly The Hon. A. KOUTSANTONIS: Thank you, sir. The current best market offer is nearly $485 cheaper than the old regulated price. That is a saving, Mr Speaker. I urge all South Australians to get off the AGL standing contract and get onto market offers, and if they have not they are paying too much for their power.