Electricity Prices

Mr VAN HOLST PELLEKAAN (Stuart) (14:50): My question is for the Minister for Mineral Resources and Energy. Can the minister explain why the expected $197 drop in average household electricity prices for 2015-16, as predicted by his media release of 30 April this year, has failed to eventuate? The minister's media release outlines how the government's advocacy was expected to contribute towards a $197 per year decrease in average retail electricity prices this year. However, the AER's pricing proposal report released today shows that electricity prices have actually increased this year instead.

Mr Knoll interjecting:

The SPEAKER: The minister hasn't uttered a word yet, but the member for Schubert is interjecting. Minister.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:51): It probably should have been the first question, sir, but I suspect the jealousy of the Leader of the Opposition pushed this right back to the last 15 minutes of question time.

Members interjecting:

The Hon. A. KOUTSANTONIS: Can you sense it? Can you sense it from the Leader of the Opposition? 'No, no, no; push it down. Push it down, don't ask it too early. He'll look too good. It's alright, I'll help you. I'm here to help.'

Mr KNOLL: Point of order, Mr Speaker: it's either 127 or 98. I'm sure you can take your pick.

The SPEAKER: I uphold one of them. Treasurer.

The Hon. A. KOUTSANTONIS: Worth every moment, sir. As I said earlier, the AER's predictions of forward prices are one thing and what also makes up a retail bill. Wholesale energy prices, retail energy prices, distribution networks, all make up a component of a bill, so there are a number of factors that intervene on a bill. I don't accept the premise of the question of the opposition. I will give you a very, very good example, Mr Speaker.

As of 5 May, the most expensive offer in the South Australian electricity market for an average home of about 5,000 kilowatt hours is $2,163. The cheapest in the market for that same household is $1,491, a difference of over $600. What the opposition will have you believe is that there is one generic price across the entire market, and that sort of scaremongering for residential customers has absolutely no benefit for the opposition.

Rather than taking the hefty loading as shadow ministers, perhaps they could come up with an alternative policy, rather than simply being the highest paid whingers in South Australia—the highest paid whingers in South Australia.

The SPEAKER: The Treasurer is warned for the second and final time for using inflammatory and insulting language.

The Hon. A. KOUTSANTONIS: Sir, I apologise if I've insulted you, sir.

The SPEAKER: No, not me.

The Hon. A. KOUTSANTONIS: Oh, good. The AER weekly report of 1 November last year predicted that prices for the first quarter of 2016 would be about $80 a megawatt hour. Of course, as I said last week, the average for the first quarter was $48. Predictions are very difficult to make in this very volatile market, but I will point this out. The retail component in a competitive market offer makes up about 38 per cent—that's with wholesale pricing in there as well—of the residential bill. It's not fair the accusations the opposition are making about power prices in this state. I do feel very sorry for the member for Stuart being pushed so far down the order and not being able to ask his question first—I'm sorry.