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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-06-14 Daily Xml
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ELECTRICITY PRICES

The Hon. M. PARNELL (14:56): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries, representing the Minister for Mineral Resources and Energy, a question about electricity prices.

Leave granted.

The Hon. M. PARNELL: An increasing number of energy commentators and alert consumers have noted that falling wholesale electricity prices are not being passed on to consumers. According to the Australian Energy Market Operator, the average wholesale price for electricity this year is $30.82 per megawatt hour, which is the lowest it has been since 2003, when the price was $30.11. Generally the price has been falling over the last five years.

One reason for this drop has been the rapid increase in renewable energy, particularly wind energy, in South Australia, which now comprises around a quarter of all electricity produced in this state. On the other hand, the retail price for electricity that is paid by consumers is going through the roof. My questions are:

1. Why is it so?

2. Does the minister accept that this is a classic case of market failure?

3. Does the minister accept that the big end of town is making money at the expense of households?

4. What will the government do to stop this rip-off?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:58): I thank the honourable member for his important questions and will refer them to the Minister for Mineral Resources and Energy in another place and bring back a response.

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