Household Appliances, Demand-Response Standards

The Hon. A. KOUTSANTONIS (West Torrens) (14:57): My question is to the Minister for Mining and Energy. Did the minister mislead the public regarding mandatory aspects of a new demand-response standard for household appliances like air conditioners, pool pumps and electric vehicle chargers when he said it was simply a trial? With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. A. KOUTSANTONIS: On 15 April, the minister said on multiple occasions, and I quote:

We're looking to see if the customer chooses to invest in an appliance that can be turned on and off and if a customer reaches an agreement with a retailer so a retailer offers 'Look if you're happy to buy the appliance…

Then a journalist asked, directly interrupting the minister, and I quote:

OK but just to be quite clear you're promising South Australians that there will be no compulsory element to this at all, you will not be required to buy an appliance that can be remotely turned off?

The minister replied to that, and I quote, ‘That's correct, yes.' However, today it has been publicly reported in The Advertiser, and I quote:

When The Advertiser reported this last month, Mr van Holst Pellekaan denied on ABC radio it would be compulsory for appliances to have the capability, saying it was only a trial. But Mr Duffy (from the DEM) said the capability would be compulsory and that, perhaps, the minister was confusing the capability with trials on how a business model might work.

Members interjecting:

The SPEAKER: Order! The member for Lee will leave for 20 minutes in accordance with standing order 137A and, when he does, the minister for Energy and Mining will have the call.

The honourable member for Lee having withdrawn from the chamber:

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (14:59): Thank you very much, Mr Speaker. I think the member opposite deliberately crafted an extraordinarily long question to make up for the fact that he hasn't asked one for two years and he wanted to extend that for himself as much as possible. It's a pleasure to—

Members interjecting:

The SPEAKER: Order, members on my left! The minister has the call. The minister will be heard in silence.

The Hon. D.C. VAN HOLST PELLEKAAN: It's a pleasure to see the member for West Torrens step up and ask an energy question. The government's position is clear: consumers should be able to voluntarily receive benefits for being part of demand management programs. To enable that choice, appliances need common and basic technical capabilities. The best value appliances are hot-water systems, electric car chargers, pool pump controllers and air conditioners.

The proposed technical standard was agreed by COAG Energy Council ministers in 2019, and the current proposal is to implement the national standard in South Australia earlier. I should add that this work actually started in what is now the Department for Energy and Mining five or six years ago, when the previous minister was in charge of those people doing this same sort of work. That's because AEMO said in the 2019—

Members interjecting:

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

The Hon. D.C. VAN HOLST PELLEKAAN: —Integrated System Plan, that for energy security into the future we need better demand management in South Australia and the South Australia-New South Wales interconnector. Unlike Labor, we don't ignore expert advice. They have opposed everything needed to fix the mess they have left behind. They play politics rather than deliver lower costs or improved security. Contrary to claims by the member for West Torrens, the activation of the appliance is actually with a third party—

Members interjecting:

The SPEAKER: The member for Giles!

The Hon. D.C. VAN HOLST PELLEKAAN: —with whom the customer has a contract, not with the government. That's why we are running trials of new business models with Amber Electric, Simply Energy and others, just as, under the previous government, they ran trials of managing air conditioners through smart controllers with SA Power Networks.

The good news is—and this has been in the public information for three years—many models already have these capabilities. Fifty per cent of air conditioners on the market already have these capabilities. The cost of these capabilities is negligible, and I am advised that there is no correlation between these capabilities and the cost of the appliances.

This has been through consultation a number of times. There have been nearly three years of process so far, with multiple rounds of consultation. The first was in 2019, as part of the COAG Energy Council process. A consultation paper for SA implementation was released on 1 March 2021. A public consultation session was held with industry in the same month. Industry has had an opportunity to give feedback. The Department for Energy and Mining has continued to engage with industry throughout this process, including one-on-one discussions with stakeholders.

Unlike Labor, we will follow expert advice and reform the power system for the long term. That's why they had—

Members interjecting:

The SPEAKER: Order! The minister has the call.

The Hon. D.C. VAN HOLST PELLEKAAN: It is extraordinary that the former energy minister would laugh—

The Hon. A. Koutsantonis interjecting:

The SPEAKER: The member for West Torrens will cease interjecting.

The Hon. D.C. VAN HOLST PELLEKAAN: —at the blackouts that he and his government at the time provided to South Australia. It is absolutely extraordinary that the leader—

Members interjecting:

The SPEAKER: Order, members on my left!

The Hon. D.C. VAN HOLST PELLEKAAN: —of the former government's energy policy—

Members interjecting:

The SPEAKER: Order!

The Hon. D.C. VAN HOLST PELLEKAAN: —would laugh and scoff at the harm that they did to South Australian energy consumers.