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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2018-10-17 Daily Xml
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Electricity Generation

Mr ELLIS (Narungga) (14:12): My question is to the Minister for Energy and Mining. Could the minister update the house on how the emergency generators engaged with the Reliability and Emergency Reserve Trader market last summer?

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (14:12): Thank you to the very hardworking and capable member for Narungga, another first-term Liberal MP focused on the important issues in their electorate.

The Reliability and Emergency Reserve Trader (RERT) is a process where shortfalls are procured to keep the lights on. The market pays for reductions in demand from smelters, mills and generators that are not usually in the market. These providers are paid if they generate. These costs are passed on to all consumers. Last year, the diesel generators participated in the RERT. They were not used and they were not paid. The generators only earned revenue during necessary testing and commissioning. I am advised that fuel costs usually exceed market revenue at those times, so the net revenue was, in fact, negative; that is, we lost money on the RERT last summer.

It was strange to read on the member for West Torrens' Twitter feed the following, and I quote:

BREAKING Government did not factor in any revenue from RERT market into his costings according to Minister DVHP. It would have been millions in revenue over 25 yrs!

The Hon. A. Koutsantonis interjecting:

The SPEAKER: Order!

The Hon. D.C. VAN HOLST PELLEKAAN: These are magic millions—they do not exist.

Members interjecting:

The SPEAKER: Order! Is the member for Waite interjecting?

The Hon. D.C. VAN HOLST PELLEKAAN: We lost money. With the generators likely to lie dormant, the only millions that exist are the $609.5 million exposed by Mr Livesey QC, but it gets worse.

Members interjecting:

The SPEAKER: Order!

The Hon. D.C. VAN HOLST PELLEKAAN: We now know Labor's plan. Their plan was to pay for the diesels using the route. Who pays for that? South Australian electricity consumers. The member for West Torrens wants consumers to pay for the diesel—

The Hon. A. Koutsantonis: Who pays for the interconnector?

The SPEAKER: Order, member for West Torrens!

The Hon. D.C. VAN HOLST PELLEKAAN: —through higher bills. It's a tax to pay for dirty diesels.

Mr Brown interjecting:

The SPEAKER: The member for Playford is called to order. The Leader of the Opposition has the call.

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