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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-09-27 Daily Xml
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Hydrogen Power Plant

Mr PATTERSON (Morphett) (14:48): Thank you, Mr Speaker. My question is to the Minister for Energy and Mining. Will the government's hydrogen power station lower energy bills for South Australian households? With your leave, sir, and that of the house, I will explain.

Leave granted.

Mr PATTERSON: ESCOSA recently confirmed that energy bills have increased a further $169 for households and $647 for small businesses.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:49): The national energy crisis that is occurring in our country right now is a problem that's occurring in Queensland, it's occurring in New South Wales, it's occurring in Victoria—it's occurring across the country and, indeed, it's occurring across the world.

Members interjecting:

The SPEAKER: Member for Morphett! Order!

The Hon. A. KOUTSANTONIS: Like most Collingwood players, he is used to having the umpires on his side, but unfortunately this time he can't have the umpires—

Mr Patterson interjecting:

The SPEAKER: The member for Morphett is called to order and warned.

The Hon. A. KOUTSANTONIS: I am not denying that power prices have increased, but again I ask the opposition to point to a single policy of this government that has contributed—

Mr Patterson: There are none.

The SPEAKER: The member for Morphett is warned.

The Hon. A. KOUTSANTONIS: Other than the one you just asked me about? My young friend really needs to know when to interject and when to remain silent rather than to remove all doubt about what everyone thinks. Yes, power prices have increased. Why have they increased? I know members opposite hate to hear this: there is an international energy crunch that is occurring. That international energy crunch that is occurring has increased coal and gas prices across the world.

Members opposite laugh about war on continental Europe and its implications internationally, but what they may not have noticed is that this is occurring around the country. In an unprecedented level of government intervention, the Treasurer and the federal Treasurer of both the state and commonwealth governments have intervened to put in place the largest ever piece of cost-of-living relief on energy bills in the history of South Australia, in the history of this state: $500 off eligible people's bills. It is a dramatic amount of money for people to save.

We have always said that our hydrogen energy plan was always about lowering wholesale power prices and being able to firm power for industrial users. Will it have a downward effect on prices? Of course it will because one of the problems we have—and I have made this point to the parliament previously—is that one of the reasons power prices are high across the country and across the world where there are integrated renewables and thermal energy is the gap. The gap is the problem. Renewables push prices lower. Everyone knows it. It is indisputable, it is science, it is physics, it is economics, it is unchangeable. What is changing—

Ms Stinson interjecting:

The Hon. A. KOUTSANTONIS: Thank you very much for the interjection from my friend the member for Badcoe. The difference here is that, of course, that gap is being met by thermal energy, and thermal energy is attempting to recover its costs over shorter and shorter periods of time. That is why prices are high. That is why the commonwealth government is doing everything it can to invest in its capacity incentive scheme to make sure we can have long-range batteries that can store power to try to bridge that gap and lower prices. Members opposite had four years to impact energy policy, and all they did—

Members interjecting:

The SPEAKER: Order! Member for Chaffey, member for Hammond, member for Morphett! Order! Member for West Torrens, you seem to be encouraging interjections.

The Hon. A. KOUTSANTONIS: All they did was privatise our backup reserves—their one policy.

Members interjecting:

The SPEAKER: Member for Florey! Member for Hammond!

The Hon. A. KOUTSANTONIS: They privatised our backup reserves. Every time we build infrastructure, they sell it.

Members interjecting:

The SPEAKER: Order!

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