Question Time

Power Prices

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:26): My question is to the Premier. What action, if any, has the government taken to lower electricity prices after its abandoned flagship hydrogen power plant. With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. V.A. TARZIA: The Labor Party's election commitment document said, 'A hydrogen power plant would lower electricity prices for business.'

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:26): I enjoy getting these questions from the Leader of the Opposition.

Members interjecting:

The Hon. A. KOUTSANTONIS: Yes, maybe if you stuck around and fought, maybe we might have a bit of a contest instead of advancing to the rear so quickly.

Members interjecting:

The Hon. A. KOUTSANTONIS: Then why interject?

An honourable member: This is starting well, isn't it?

The Hon. A. KOUTSANTONIS: I think it started very well. It's important to note that in terms of election commitments that we made, the opposition (the government at the time) criticised the Premier because he said at a meeting that politicians who turn up promising X dollars in reduction in power prices, as members opposite did—do you remember $303? Remember that promise?

Members interjecting:

The Hon. A. KOUTSANTONIS: I heard my young friend say that 'bills came down under us'—if only it were true. The truth is that power prices are down because the wholesale prices that impact business are lower in South Australia than almost every other jurisdiction in the country. I have to say that when I hear members opposite criticise renewable energy, and criticise the role that renewable energy plays in the National Electricity Market, it shows a level of ignorance and ideology that is dangerous to this country and dangerous for business.

I am glad my friend raised the interconnector that apparently we hate. Remember that the interconnector was going to cost only $1.4 billion and then $1.7 billion? Interestingly, what is the price cost now of the interconnector? Can my friends opposite tell us all?

Members interjecting:

The Hon. A. KOUTSANTONIS: It is over $3 billion—over $3 billion foisted on the people of New South Wales and South Australia. I have to say that in terms of uncosted election commitments, the idea that members opposite would even mention the interconnector shows a level of disconnect to the concerns of ordinary consumers. Imagine being promised that the interconnector only costing $1.7 billion to now have more than doubled in cost, more than doubled in cost, is somehow going to lower power prices when it's not even finished. You can yell out 'hydrogen' all you like, it doesn't change the fact that the one election commitment that they made on electricity has failed.

The SPEAKER: The deputy leader with a point of order.

Mr TEAGUE: Standing order 98: it is the very example of debate. It was a simple question: what has the government done? All we've got is this parading stump speech stuff about everything but. The minister needs to answer the question. If the Premier won't answer it, the minister has got to answer it.

The SPEAKER: There was a fair bit of backwards and forwards there with interjections and then responses to interjections. Maybe we might get back to those on my left asking a question and then those on my right answering it.

The Hon. A. KOUTSANTONIS: One of my major concerns when we were in opposition was the lack of development of renewable resources in the state while we were in opposition. It was almost a freeze. When you have no new renewable energy being built and opened while in office and a freeze on renewable energy, it is taking time to catch up.

What we have seen, sir, since we have been in office is, again, more renewable developments being unleashed in South Australia—more battery storage being unleashed in South Australia. What you are seeing is more generation, more contracts being signed and a lot more generation available in the state. That has seen wholesale power prices in South Australia drop.

Our jurisdiction, according to AEMO, is either the second lowest or the lowest in the country when it comes to wholesale power prices on average in the last calendar year. I have to say that members opposite, when they say that they care about business and they care about industry, know that the industry in South Australia operates on a wholesale market. They are the ones to take full advantage of our renewable resources. Right now, heavy industries can buy their power relatively cheaply during the day, but members opposite know that what is causing price spikes to occur is gas prices—something which they are responsible for.