Statutes Amendment (National Energy Laws) (Rules) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 24 July 2018.)

The Hon. C.M. SCRIVEN (17:00): I rise today to support this bill on behalf of the opposition. The work of this national reform began under the former minister for energy, the Hon. Tom Koutsantonis. I commend him for his role in formulating this COAG agreement, and for his unwavering commitment to reliable, affordable, clean and secure energy for South Australians.

Today's bill is a result of work that first began in 2016. Faced with a broken National Electricity Market (NEM), the nation's energy ministers agreed to undertake an independent review of the NEM to take stock of its current security and reliability. Dr Alan Finkel AO, Australia's Chief Scientist, was appointed chair of the expert panel to conduct the review and develop a coordinated national reform blueprint.

One of the key recommendations of Dr Finkel's review was the establishment of the Energy Security Board. The board comprises the Australian Energy Market Commission (AEMC), the Australian Energy Market Operator (AEMO) and the Australian Energy Regulator (AER), with an independent chair and deputy chair. The board is responsible for the implementation of Dr Finkel's national reform blueprint, as well as providing whole-of-system oversight of the security and reliability of the NEM.

At the COAG Energy Council meeting in Brisbane on 14 July 2017, ministers agreed that there was a need to provide a mechanism to allow for the timely implementation of the Energy Security Board's recommendations. The government's bill establishes this mechanism.

As South Australia is the lead jurisdiction responsible for passing legislation on behalf of the NEM states, the South Australian energy minister takes carriage of this bill. The government's bill establishes a mechanism by which a recommendation of the Energy Security Board to make a rule can be made by the South Australian energy minister under the national electricity law, national gas law or national energy retail law.

A proposed rule must be in connection with energy security and reliability, or long-term planning of the National Energy Market. The recommendation to make a rule must have the unanimous support of the Ministerial Council on Energy (MCE). The board's proposed rule must be in connection with energy security and reliability, or long-term planning of the NEM.

Under the national gas law, proposed rules may also be in relation to investment in and operation and use of national gas services. Once recommended by the board, a proposed rule must receive the unanimous support of ministers, then the Ministerial Council on Energy can recommend that the rule be made by the SA energy minister. Once made by the SA energy minister, the rule becomes indistinguishable from all other rules over which the AEMC has jurisdiction.

This bill is a sensible approach to ensuring the Energy Security Board can respond to the rapidly changing electricity market, and implement real changes in a timely manner. I commend both the former Labor government and the Liberal government for their work on this bill.

In closing, I will also take the opportunity to acknowledge the important work of the former Labor government in establishing South Australia as a leader of renewable energy, not just in Australia but across the world. I commend the bill.

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (17:03): On behalf of the government I will sum up the debate. Only the opposition, the Hon. Clare Scriven, has made some comments, and I thank her for those comments. Some of the comments she made would have, in another era, provoked some response from me, but in the interests of progressing this this evening I thank her for her contribution and commend the bill to the chamber.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (17:06): I move:

That this bill be now read a third time.

Bill read a third time and passed.