Bills

Australian Energy Market Commission Establishment (Governance) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 27 September 2017.)

Mr VAN HOLST PELLEKAAN (Stuart) (16:30): Regarding the Australian Energy Market Commission Establishment (Governance) Amendment Bill 2017, let me say straight away that the opposition supports this bill without any reservation or suggested change. The AEMC (Australian Energy Market Commission) makes the rules that govern the electricity and national gas markets in the NEM and beyond. The governance arrangements for the AEMC are determined by the Australian Energy Market Commission Establishment Act 2004. South Australia is the lead legislator for national energy legislation, so of course, as you would know, Deputy Speaker, changes that have been agreed in principle at COAG get worked through our parliament before they go to the rest of the nation.

The AEMC act currently requires the AEMC to consist of three commissioners, inclusive of the chairperson. Following a review of the COAG Energy Council, it was recommended that the number of possible commissioners be increased to five and the minimum be three. The reason for increasing the number of commissioners is to manage the increasing workload of the AEMC by increasing the number of commissioners. It also seeks to increase the diversity of skills and experience that has been built into the appointment protocol and matrix used by the COAG Energy Council. The consequential amendments relate to the appointment process and quorum requirements relating to the appointment for additional commissioners.

To my knowledge, the appointment process has not changed at all. With regard to the quorum process, it is what you would typically expect, being 50 per cent plus one. They need to have 50 per cent plus one, regardless of the number that actually turns up. There must be three there to make it happen, so three, four or five would be required for the meeting to actually proceed.

While of course there would be a cost for these commissioners, to my mind and my Liberal colleagues' minds, that cost is absolutely inconsequential with regard to any impact on consumers' bills, which of course is the first priority. In my opinion, based on the benefit to consumers, it is also inconsequential increasing the number of commissioners by two-thirds, essentially going from three to five possible appointments. As I have just said, it is about increasing not only the number of people to be involved in this work on behalf of the market but also the range of skills that the commissioners could have between five of them instead of between three of them, which makes good sense.

There is much debate all over the south-east of Australia about electricity at the moment, and of course, as I said, this does apply to gas markets as well, but South Australia is in the worst position of all of the states with regard to electricity, so I would hope that an improvement in the number and the breadth of skills of these commissioners would lead to a direct benefit to South Australia. The opposition supports the bill.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (16:34): I thank the opposition for their support and for their remarks. This is in accordance, as you were told, with the findings of the Review of Governance Arrangements by the Australian Energy Markets, known as the Vertigan review, which responded to stakeholder feedback that the current three commissioner structure of the AEMC does not adequately provide for succession planning or diversity of oversight or diversity of background and experience appropriate to the range of projects for which the Australian Energy Market Commission is responsible. The expert panel considered that the appointment of additional commissioners was warranted and recommended that the number of commissioners be increased up to five.

I say this by way of comment: with the death of Matt Zema you can see starkly the need to make sure that there is corporate memory with people ready to step up to fill vacancies. One or two dramatic exits, through retirement, illness or some other reason can leave gaping gaps in the market, and this is far too important not to have a level of redundancy in the system. I thank the opposition for their support. I thank the COAG and Mr Vertigan for the recommendations and I commend the bill to the house.

Bill read a second time.

Third Reading

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (16:35): I move:

That this bill be now read a third time.

Bill read a third time and passed.

The Hon. A. PICCOLO: Madam Deputy Speaker, I draw your attention to the state of the house.

A quorum having been formed: