STATUTES AMENDMENT (ELECTRICITY AND GAS—PRICE DETERMINATION PERIODS) BILL

Second Reading

Adjourned debate on second reading.

(Continued from 29 June 2010.)

The Hon. D.W. RIDGWAY (Leader of the Opposition) (15:34): I rise on behalf of the opposition to indicate that we will be supporting this bill that has been received from the House of Assembly. It is a relatively simple bill which allows ESCOSA (Essential Services Commission of South Australia) to make different price determination periods. Currently the price determinations are made for a period of three years and this will allow the regulator to determine the special circumstances where a price determination can be made within this three-year time frame. Special circumstances have been deemed to be events of magnitude to disturb the fundamental basis of an existing price determination so as to require a new determination to be made.

If an unexpected event occurs, ESCOSA will have the power to initiate a review to determine if this event is a special circumstance, and special circumstances will exist where the event was unable to be predicted, planned or reasonably insured against. The act does allow for a special circumstance to be determined by ESCOSA, but all flexibility in these determinations is lost as a new determination itself has to be made for three years.

Essentially the bill permits intra-period variations, which allow for special circumstances to be dealt with in a more timely and cost-effective way. I guess that one of the examples of special circumstances that might arise is the unexpected consequences at any time in the future of the implementation of an emissions trading scheme or a price on carbon, as the current Prime Minister is talking about at some point in the future. That may have an impact on electricity and gas prices, and therefore ESCOSA may then see fit to make this special circumstances determination. The opposition certainly supports this bill. It has been through the House of Assembly and, with those very few words, I indicate that we are prepared to support it in this chamber as well.

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (15:38): I understand no other members wish to speak in this debate but have indicated their support for the bill, and I thank them for that and commend the bill to the council.

Bill read a second time and taken through its remaining stages.