Power Supply

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:31): My question again is to the Premier. What action, if any, has the government taken to ensure firming in our power system 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 power system requires access to generators that can continuously provide power. A hydrogen power plant will ensure there is firming in the system.'

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:31): Firming is a very important aspect of the government's plans. I think members opposite misunderstand what firming is. The idea of firming is that you use gas-fired generation or battery storage to firm renewables—you know, the things you are opposed to, the generation that you don't like, the generation that you say increases power prices.

Mr Telfer interjecting:

The Hon. A. KOUTSANTONIS: No, we have not dropped. Unlike members opposite, who sold the generators that we had put in place as back-up reserve to companies that are just simply tolling those and not offering, in fact, retail contracts into the market, what we will be doing with our generators when we sell them is they will be going to an operator who will be offering retail contracts into the market to lower power prices. This will have a direct impact in increasing the competitiveness of the South Australian electricity market.

One of the unfortunate aspects of the privatisation of ETSA and the sale of our generators is that they have created these monopolies amongst gentailers—that is, people who not only generate electricity but also retail it. Over 67 per cent of our generation is held by three or four retailers in this state. They basically have a monopoly on retail contracts that mums and dads sign at home and a lot of small businesses use.

Mr Telfer interjecting:

The Hon. A. KOUTSANTONIS: Interjections don't change those facts; they are the facts. What is important here is that we have a new competitor in the market. What we will be doing when we on-sell our generators to recover the cost—and we can put it into the Whyalla steelworks—is making sure those generators go to a retailer who is going to compete with AGL, who is going to compete with Origin, who is going to compete with the gentailers in this state, who are charging far too much for power.

Let's go back to the root cause of this. What has caused power prices to increase across the country? Is it renewables or is it gas prices? It's gas prices. Gas is what has caused prices to spike—the cost of gas. Who was the guilty party in this chamber that decided that the second-largest basin in this state, the first gas basin in this country, should not have fracture stimulation occur on it? Members opposite. Here they are complaining about—wait for it—the impact of gas prices on our electricity.

How is it they turn up to the Santos events, they turn up to the Beach Energy events, they drink the cocktails, they wear their R.M. Williams and the chambray pants, they drink the drink and they put their hats on and they talk about being pro-gas while they vote to ban gas extraction in parts of South Australia.

Members interjecting:

The Hon. A. KOUTSANTONIS: I am just one man. We do not have a majority in both houses of the parliament. Members opposite yell out about having a majority. You don't need a majority to get things done—just ask Vickie Chapman. You don't need a majority to do things in this parliament. When we were in opposition we were able to change the constitution. We were in the minority. We were able to establish an inquiry into the deputy premier. We weren't the majority. You would be surprised what you can do when you're not the majority.

Mr TEAGUE: Point of order.

The SPEAKER: The minister has finished.

Mr TEAGUE: He might have finished. Standing order 98: yet another question not answered.