Ministerial Statement

Australian Energy Market Operator Report

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:06): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: I wish to update the house on the Australian Energy Market Operator's report released late yesterday into the load shedding event that affected 90,000 South Australians. After reading the report, the South Australian government's opinion remains that the load shedding of 90,000 South Australians last Wednesday night was completely unnecessary and entirely avoidable. AEMO documents a litany of errors, from incorrect forecasting by the national operators to faulty software of South Australian Power Networks, the consequences of which were suffered by South Australian households and businesses.

Even more damning is the fact that the report details that there was enough capacity in the South Australian system to meet demand on that hot night. However, it was sitting idle, either refusing to enter the system, not being directed into the system, or not having enough time to enter the system. Serious questions remain of both the national operator and of the local distribution and transmission networks. Questions such as: why is it that South Australia was given no notice prior to load shedding when the New South Wales government received 36 hours' notice prior to their load shedding following day?

There is also the unresolved issue as to how AEMO got its forecast so wrong, why they reacted so slowly when they realised the error and what they are doing to prevent it from happening again. The Essential Services Commission of South Australia (ESCOSA) will now investigate all the compliance and licensing aspects in relation to this incident, including whether South Australian Power Networks breached its licensing conditions. Tomorrow, on a phone hook-up of the COAG Energy Council, I will be using these failures as a reason for South Australia to retake control of our power network to ensure it does not happen again.

Members interjecting:

The SPEAKER: I note from the pre-luncheon session of play that the member for Hammond is already on a warning, as is the member for Finniss.