SA Power Networks

The Hon. F. PANGALLO (15:10): I seek leave to make a brief explanation before asking a question of the Treasurer and Leader of the Government about SA Power Networks' deal that insulates its big profits.

Leave granted.

The Hon. F. PANGALLO: As we know, the Australian Energy Regulator granted a $59 price increase to the South Australian Power Networks for its distribution charges to residential customers and more to commercial customers to make up for shortfalls to the significant profits of a privately owned business which paid no tax last year. It will result in increased charges being passed on to consumers, both residential and commercial. My question to the Treasurer is:

1. Will he now admit that his government will not be able to deliver the reduction of up to $300 on power bills, as they promised last year, and that delivering power cuts is almost an impossibility?

2. Is he comfortable with the cosy arrangement that has allowed SA Power Networks to keep slugging its customers when it suits them to maintain their profits just because more South Australians are embracing renewable energy to wean them off the grid?

3. Will the government consider action that can alter this bizarre arrangement, where a government regulator allows a business to protect its revenue at the expense of consumers?

4. Where else does this gold plating occur?

The Hon. R.I. LUCAS (Treasurer) (15:12): I have enormous confidence in my ministerial colleagues, the Minister for Energy, the Hon. Dan Van Holst Pellekaan, and the Premier, the Hon. Steven Marshall, in terms of delivering on the promises that they gave to the people of South Australia prior to the election, including the particular promise to which the honourable member has referred. I have certainly received no evidence at this stage from my ministerial colleagues that in any way they are backing away from the commitment that they have made on behalf of our party to the people of South Australia.

The Australian Energy Regulator is not a government regulator. It is an independent regulator appointed by governments, federal and state, Liberal and Labor, so it is certainly not a creation or a creature of the South Australian government. It is an independent regulator. It is common practice in many industries. We have our regulator in South Australia, the Essential Services Commission, that regulates prices such as water prices because we have a government-controlled water monopoly. So the Australian Energy Regulator is an independent body, an independent regulator, answerable ultimately to federal and state Labor and Liberal ministers in relation to electricity pricing.

If the member chooses to be critical of the independent regulator that is entirely his prerogative in relation to the inference that there is some cosy relationship between these independent people who serve the people of Australia as best they can as being regulators and a particular company that is being regulated. I do not join with him in terms of that particular criticism of those people who, as I said, have been appointed—

The Hon. K.J. MAHER: Point of order: the question was not to the Treasurer but to the energy minister. The point of order is relevance. I appreciate that the Treasurer is trying to protect his minister who has misled the house—

The PRESIDENT: No, it's—

The Hon. K.J. MAHER: —but the question was to the energy minister and he has been going for about six minutes now.

The PRESIDENT: It is convention that the Treasurer can attempt to answer it or seek to answer it and also refer those other remaining matters that he cannot answer, which are in the mind of the minister alone, and refer them to him. Treasurer, please go on.

The Hon. K.J. Maher interjecting:

The PRESIDENT: Leader of the Opposition, please, if you want to carry these conversations on, please leave—remove yourself from the chamber.

Members interjecting:

The PRESIDENT: Leader of the Opposition, you are only embarrassing yourself at the moment. I would like to hear from the Treasurer.

The Hon. R.I. LUCAS: I will stand corrected, but I thought the member did direct a question to me as Leader of the Government and also, as I said, by way of direction to my ministerial colleague, the Minister for Energy as well. Let me conclude, as I was getting to the end of my explanation. As I said, I don't choose to join with the honourable member in terms of the criticism of people who have been chosen by governments, Labor and Liberal, to do the best they can to independently regulate what is a very complicated National Electricity Market and a very complicated industry. It is not an easy task.

I haven't been able to turn up very quickly the morning media report to which the honourable member has referred, but the number he has referred to, $59, I think there was some reference, and I will stand corrected when I do find the article, that there were various other issues that would need to be taken into account before the actual cost impact on individual households needed to be taken into account. Certainly, when I, on reflection, get the further advice, I might be able to provide further information to the member in terms of what the ultimate impact on customers will be as a result of this particular decision of the energy regulator.

The PRESIDENT: The Hon. Mr Pangallo, a supplementary?