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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-09-09 Daily Xml
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AGL

Mr WILLIAMS (MacKillop) (14:53): My question is to the Minister for Energy. Is the minister aware that the ACCC's Ed Willett, who is a member of the Australian energy market regulator, has today accused AGL of price gouging in South Australia?

The Hon. P.F. CONLON (Elder—Minister for Transport, Minister for Infrastructure, Minister for Energy) (14:53): I am. I saw that, and I have to say, if he believes that he should do something about it. This is the regulator set up there. He reckons that has happened. I invite him to do something about it. That is his job. I can tell members this: as a result of this government's move on the Ministerial Council on Energy there are processes set up to fine people who engage in bidding behaviour that is not in good faith. If that is the case, I would like Mr Willett to do something about it. What I will say is that we would not be allowed to take into account, in dealing with a bidder, allegations that were not proven, because that would not be, to my mind, entirely fair.

Can I say that I saw those comments, and I will say this: I have never had much faith in the ACCC in terms of its regulation of electricity, and I would prefer that the AER did not involve the ACCC because I have seen it make too many mistakes in the past. I am concerned, have been concerned, and have voiced those concerns on a number of occasions, about the Torrens Island Power Station. Regardless of who it is operated by, it is a very big unit in a marketplace of this size. Plainly, if people want to act in bad faith, it is a tremendous opportunity to manipulate the market. However, I am sure all of that occurred to the previous government when it was selling those assets to the private sector. I am sure it thought about that. However, it is not within my power to break up the Torrens Island Power Station into little bits.

I am sure that you thought about their market influence at that time, but I will say this: we are always concerned at reports of people bidding not in good faith. We moved heaven and earth to ensure that the National Electricity Market adopted a rule that would punish with big fines people that did that. What I would say is if Mr Willett, or anyone else, has some evidence, that case should be brought against AGL, but we are not allowed to judge tenders either on the basis that we do not like people or on the basis of allegations by a regulator, no matter how well informed, unless they are actually found to be true, and I think a little bit has to go before that is the case.

I am not absolving AGL. I can say this: if AGL has engaged in that behaviour, it should be punished to the full extent of the law; and, if Mr Willett thinks the law should be improved to punish that behaviour, I am happy to hear from him. Of course, I have only ever read about him in the media—I have never actually heard from him at the Ministerial Council on Energy—so, if he does have something to say, it might be useful to say it to the body that can change the laws. Until that time, we will just have to struggle on with the facts as we know them.

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