Power Infrastructure

The Hon. T.R. KENYON (Newland) (14:30): My question is also to the Minister for Mineral Resources and Energy. Can the minister inform the house about the current state of electricity infrastructure ownership in South Australia and how it has evolved?

The SPEAKER: And those who are on two warnings, if they utter a sound outside standing orders, they will depart. Treasurer.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:30): Thank you very much, sir. I thank the member for Newland for his question and his keen interest in the ownership structure of South Australia's electricity assets. I think the majority of us are aware by now that the Electricity Trust of South Australia (formerly known as ETSA) was privatised by the former government in 1999. ETSA was established by the Hon. Sir Thomas Playford, who looks down in disapproval now on his current party, in 1946 as a publicly owned utility responsible for providing electricity to all South Australians for the public good of equity. ETSA, which controlled the major power stations near Port Augusta and Torrens Island, expanded the electricity distribution network in and around a system that benefitted the entire state.

According to reports, by the end of the Playford era, South Australia had one of the cheapest and most efficient electricity networks in the world—quite a claim for a state of our size and our population, given the number of customers that would have to have been as a ratio on that distribution network. That all changed in a fateful decision in this parliament in 1999 when a decision was taken by former premier John Olsen and current shadow treasurer Rob Lucas in another place to privatise the Electricity Trust of South Australia.

Members interjecting:

The Hon. A. KOUTSANTONIS: Apparently, we were told it was because of risk. This is apparently—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey will depart for the next hour under the sessional order.

The honourable member for Chaffey having withdrawn from the chamber:

The Hon. A. KOUTSANTONIS: The sale of our electricity network—this was apparently when the Leader of the Opposition was still at school, as he recently explained on radio on the public broadcaster. He was in school in 1999—yes, in school. The sale of our electricity network—

The Hon. S.E. Close interjecting:

The SPEAKER: The Minister for Education is called to order.

The Hon. A. KOUTSANTONIS: —saw the transmission assets separated and sold off to international interests. The Chinese state-owned enterprise, State Grid, purchased the electricity transmission network, I am advised, that would later operate as ElectraNet. The distribution network was sold to CKG, where it retained the name ETSA Utilities until 2012 when it changed its name to what we are now familiar with, SA Power Networks. I understand that the Queensland government also purchased a portion of our distribution networks as well.

Due to the stringent provisions of the privatisation contracts, South Australian consumers have suffered from the lack of competition that now exists in all areas of the market. This also means that the levers available to us to positively influence the power price are now severely limited because of those seated opposite.

It is very difficult to unscramble an egg, but we are developing a plan to intervene into the market to create a more reliable, cleaner and affordable energy network in the spirit of Sir Thomas Playford. I look forward to detailing this plan to the house and I look forward to members' support because I think there are many members—and I was here in 1999, not in school, even though I am younger than the Leader of the Opposition. I was in the parliament at the time we privatised the electricity networks. I remember making an impassioned plea to the Premier at the time not to do so. I remember the great words of the then member for Playford, the young Jack Snelling, arguing that Sir Thomas Playford was looking down disapprovingly on his heirs and successors. A great speech to the parliament and unfortunately for us, they didn't heed that warning.

The Hon. J.J. Snelling interjecting:

The SPEAKER: The Minister for Health is warned for the second and final time.

The Hon. A. KOUTSANTONIS: Now we are in the hands of people who are interested in nothing else than profit rather than the people of this state.