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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-10-18 Daily Xml
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National Electricity Market

Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (14:56): Thank you, Mr Speaker. My question, again, is to the Minister for Energy. Did Alinta warn the government that if the Northern Power Station ceased operations wholesale electricity prices would rise and electricity security would fall, and, if so, what was the government's response?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:56): Well, as you have seen, Mr Speaker, the government has asked the Australian Energy Market Commission to consider rule changes on the basis of there being greater instability in the South Australian grid. The question had two parts. The first part was: what did Alinta advise, and then what did the government do? So—

Mr Marshall: What was your response to Alinta's advice, was the second part.

The SPEAKER: The leader is on two warnings.

The Hon. A. KOUTSANTONIS: The government is doing lots to maintain energy reliability in the state and the safety security of our energy market, but, unfortunately, again, we don't own the assets that deliver these services. The best that we can do is hope that the national bodies that govern this, which were established by this government and which were voted on by members of the opposition on behalf of a national framework, can manage these market operators.

Members interjecting:

The Hon. A. KOUTSANTONIS: I notice members opposite ignorantly saying, 'Keep the lights on.' Well, I have to say—

Ms CHAPMAN: That's not the answer to the question I asked. My point of order is relevance.

The SPEAKER: So the point of order is?

Ms CHAPMAN: Relevance.

The SPEAKER: Relevance.

Ms CHAPMAN: Totally.

The SPEAKER: I will listen carefully to what the minister has to say.

The Hon. A. KOUTSANTONIS: Thank you very much, Mr Speaker. Whenever anyone approaches the government seeking assistance, no doubt they will argue their case as to how it will benefit government, but I have to say that the greater overriding principle here is what occurs if we do subsidise one power generator and not the others. And that was the overriding consideration government had, and that is something which we stand by today and which will keep the state in good stead.

Ms CHAPMAN: I am happy to read the question again.

The SPEAKER: Refresh our memories.

Ms CHAPMAN: Thank you, Mr Speaker. Did Alinta warn the government that if the Northern Power Station ceased operations wholesale electricity prices would rise and electricity security would fall, and, if they did, what was the response? That is specifically the question.

The Hon. A. KOUTSANTONIS: The question doesn't make sense because it presupposes that the exit of Northern would not bring on any other generation.

Mr Marshall: Did they warn you in their office? Yes or no?

The Hon. A. KOUTSANTONIS: So, the way the National Electricity Market operates in this state is that there is a great deal of thermal generation in the state, so to try to make an assumption about what occurs if one generator is taken out of the system and then everyone else stays exactly the same, what occurs? There are a number of scenarios here.

Again, there is not one bit of evidence at all that the opposition can point to to say that the state blackout was—

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: —caused by Northern not—

Mr Marshall interjecting:

The SPEAKER: The leader has been warned twice. He continues to roar across the chamber. He will stop roaring across the chamber.

The Hon. A. KOUTSANTONIS: The idea that you can presuppose what occurs if one generator pulls out in comparison to the others is like saying what would be the impact of Torrens closing. Well, other generation comes on and the market responds. The real question that the people of this state need to ask about Northern is: why was it that Northern wasn't fully contracted? If it was so cheap and so reliable, why wasn't every industrial user in this state signed up to contracts with Northern? Again, there is silence.

The truth is that a majority of those users were not signed up to coal-fired generation in this state, they didn't have contracts with Northern. The reason Northern closed was that they could not make the plant work. If a plant can't work and it's not sustainable, what could we do to make it different, other than subsidising our power? If we subsidised our power and—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey is warned for the second and final time.

The Hon. A. KOUTSANTONIS: If we subsidise that power, what does every other generator say to us? So, the question is nonsensical. It makes no sense. It is just completely ridiculous, and the interjections coming out about keeping the lights on are ridiculous.

The SPEAKER: Alas, the minister's time has expired. The member for Florey.

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