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House of Assembly - Fifty-Fourth Parliament, Second Session (54-2)
2020-07-21 Daily Xml
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Energy Prices

Mr McBRIDE (MacKillop) (14:47): My question is for the Minister for Energy and Mining.

Members interjecting:

The SPEAKER: The member for Cheltenham is on two warnings.

Mr McBRIDE: Can the minister update the house on the reduction in price that South Australian gas consumers can expect in the near future?

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (14:47): I appreciate the question from the member for MacKillop, a proud supporter of the gas industry in his electorate in the South-East, and it is very pleasing that the price of gas is going down.

Our Marshall Liberal government has made no bones of the fact that one of our highest priorities is to get down the cost of living for households, the cost of operating for businesses, and we have seen very recently, with effect on 1 July, that AGL and Origin Energy reduced their electricity prices by an average of $127 and $62 per year, respectively. Now, of course, we know that comes on top of a 3 per cent reduction the year before, and that was on top of a 0.5 per cent reduction in the year before that. So electricity prices are going down as are gas prices.

We are very optimistic that the submission put by Australian Gas Networks to the Australian Energy Regulator for the 2021-26 period will actually have a 7 per cent reduction in the cost of transmission of gas to households in South Australia—absolutely outstanding news for consumers. We all know what an important product gas is, whether it's a reticulated system into people's homes, whether it's bottles, whether it's heavy industry using a lot of it—we all know what a significant cost component that is for all South Australians, whether it be the smallest household through to the largest employer. So it is absolutely tremendous news and very much part of our government's program.

We have reduced NRM levies. We have reduced emergency services levies. We have seen electricity prices go down. We have reduced water prices. We have seen gas prices go down. We are reducing land tax; the total take of land tax is reduced significantly.

Members interjecting:

The SPEAKER: Order!

The Hon. D.C. VAN HOLST PELLEKAAN: Overwhelmingly, people across South Australia will pay less land tax than they previously did under this government. Reducing the cost of living is absolutely critical to our government because we are doing everything that we possibly can for all South Australians. This is in stark contrast to what South Australians experienced in the previous decade before we came into government.

The Hon. A. KOUTSANTONIS: Point of order, sir.

The SPEAKER: Minister, there is a point of order; I imagine it is for debate?

The Hon. A. KOUTSANTONIS: That was clearly debate, sir.

The SPEAKER: I will refer to my earlier rulings about some compare and contrast within reason. If I hear the minister cross the line, I will bring it to his attention. Minister for Energy and Mining.

The Hon. D.C. VAN HOLST PELLEKAAN: Mr Speaker, I appreciate your wisdom. I can't see any harm in contrasting with the decade before we came into government. Those opposite perhaps have quite a glass jaw when it comes to that sort of thing, but let me just say that this is in contrast to what we saw in the decade before we came into government. These costs are reducing for the benefit of all South Australians. We are determined to work as hard as possible to continue in this direction, particularly during these incredibly challenging economic times due to the COVID-19 virus.

This is something that was our policy, our direction and our clear intention from opposition and in government, but we redouble our effort because we know how many households and how many businesses are really struggling due to the COVID restrictions. It seems that those restrictions will not be alleviated anytime soon from a national perspective. We are ever vigilant with regard to things that are going on in other states. We feel for those people in other states who are doing it even tougher than we are at the moment.

We are certainly not out of the woods with regard to the challenges to our economy in Australia and in South Australia from COVID-19, so no better time for people to be benefiting from lower electricity prices, lower water prices, lower emergency services levies and lower natural resources levies. Happily, we see through the Australian Gas Networks' submission to the Australian Energy Regulator that we have every reason to expect from next year that gas prices for South Australian households will be cheaper also.

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