Question Time

Power Outages

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:12): My question is to the Minister for Mineral Resources and Energy. What contingencies are in place to protect South Australian power consumers from the imminent closure of the Hazelwood power station, and the subsequent loss of supply through the interconnector, following AEMO's warning that last week's situation could have been much worse if Hazelwood had not been supplying the National Electricity Market?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:12): The first point to make about the event last Wednesday is that it was completely avoidable. It was completely unnecessary, it didn't need to occur and, as far as the government is concerned—

Mr Pisoni interjecting:

The SPEAKER: The member for Unley is called to order.

The Hon. A. KOUTSANTONIS: —and indeed as I think a large part of the country is becoming aware, AEMO dropped the ball. They dropped the ball and they admitted as much in the Senate inquiry, when Mr David Swift said to the Senate inquiry that they got the demand forecast wrong. When you get your demand—

Members interjecting:

The Hon. A. KOUTSANTONIS: When you get your demand forecast wrong, it is very hard to then have generators turn on to meet that demand, given the notice they've been given. I do note—

The SPEAKER: Point of order.

Mr GARDNER: Standing order 98: the minister is debating generally about topics related to electricity supply, not about contingencies for when Hazelwood shuts down, which is the specificity of the question.

The SPEAKER: I'm sure the minister will get to that.

The Hon. A. KOUTSANTONIS: The Australian Energy Market Operator is tasked with dispatching available demand to meet our needs. That's their job, that's their charter, that's their constitution, and it is framed under, quite frankly, the privatisation of ETSA. They are the ones who now manage our electricity market. When the national operator gets its demand forecast wrong and finds it easier to load shed South Australians rather than direct, in advance, another generator on, we are right to lose faith in that market operator. We are right to put our own measures in place. As the Premier announced last Thursday, no more would this state allow itself to be at the mercy of the market operator and the market forces members opposite have subjected the people of South Australia to.

Members interjecting:

Mr PISONI: Point of order, sir.

The SPEAKER: Before I come to the point of order, I call to order the member for Mount Gambier, the deputy leader, the members for Davenport and Schubert, and the member for Chaffey has put himself on the list. Point of order.

Mr PISONI: No, I think not.

The Hon. A. KOUTSANTONIS: As the Premier announced last Thursday, given the market operator can't seem to ensure supply to South Australians and that private operators are finding it more convenient to leave generation idle rather than to serve South Australians, regardless of the price signals being sent into the market by the private operator—that is, even though they've set the highest possible price in the market, they don't turn on—that's market failure. It's market failure because it wasn't what people expected from their energy markets.

Energy, electricity, is a public good. South Australians demand and expect it to be there when they need it, and that's why that premier, in a previous time, made sure it was in public hands. What we are trying to do, is of course—we need to intervene into this market now to make sure that what happened to South Australia last Wednesday never happens again. When we announce our plans to dramatically intervene into this market and unpick the damage done by members opposite through the privatisation, it will be dramatic.

The SPEAKER: Point of order.

Ms CHAPMAN: Clearly, under 98, the Attorney—

The SPEAKER: No, I think actually the Treasurer was, after two minutes, moving into the relevant zone. Treasurer.

The Hon. A. KOUTSANTONIS: Given the announced closure of the Hazelwood coal-fired power station, which is now, I think, the ninth in a long list of disorderly exits from the Australian energy market because the commonwealth government refused to place a price on carbon or refused to put a market mechanism in place to have an orderly transition to meet the Paris agreement—wait for it—that they signed, not us, we have always supported a price on carbon, as did Malcolm Turnbull. I have to say that when Hazelwood exits the market, South Australia, as the Premier announced, must put measures in place to ensure that we have supply for our citizens. We will be making an announcement very soon about our dramatic intervention into the market to unpick the privatisation of members opposite.

Members interjecting:

The Hon. A. KOUTSANTONIS: I heard the Leader of the Opposition say that he was in school when ETSA was privatised in 1999, so that means he is either lying about his age, or lying about being in school.

Members interjecting:

The SPEAKER: The member for Adelaide is called to order. The members for Mount Gambier and Unley are warned a first time, and the members for Morialta and Unley are warned a second and a last time.