Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Hansard source

The government has a great degree of confidence in the modelling that has been undertaken. It was independent modelling of a very comprehensive nature by the federal Treasury, supported in the case of the energy market by two private organisations that did extensive modelling of the electricity price impact. We stand by what that modelling says, which is a 10 per cent increase in household electricity prices averaged across the country. Different scenarios were contained in that modelling and the government has a lot of confidence in them.

It is interesting and—from a standpoint where the Leader of the Opposition has been saying there would be an unimaginable price impact and at various times has asserted that electricity prices will rise by 25 per cent and then 30 per cent and even more—it is important to note now that in various jurisdictions regulators are examining this issue and what the real-world price impact will be, and they are confirming that the Treasury modelling is accurate. Just last week, the South Australian regulator issued the estimated price impact in South Australia, and it is $1.50 averaged across households in South Australia. In Western Australia, it is averaging $2.50. In New South Wales, IPART has confirmed that it is $3.30. It is important that we keep these things in some perspective. We certainly have a lot of confidence in the modelling. The regulators are now resolving that the electricity price impacts are consistent with what the Treasury said; in fact, in some jurisdictions it is less than what the Treasury had estimated.

The other important point to make is that the attribution of carbon pricing to everything that is happening with electricity prices has been misrepresented in this debate. In various jurisdictions, electricity prices have risen by over 50 per cent over the last several years. I was in Western Australia last week. Electricity prices have risen by 50 per cent, I think, in two years in Western Australia. None of these things have anything to do with carbon pricing, which commences just from 1 July. My colleague the member for Chifley and I, as New South Wales politicians, are acutely aware that there was, I think, an 18 per cent increase in electricity prices in New South Wales last year This had nothing to do with carbon pricing, and it came off the back of previous significant increases. This has all been driven by the investment in poles and wires in our transmission and distribution system in a host of jurisdictions throughout the country. An urgent investment has been recognised as necessary in those areas. If there is excessive investment—and I note that some commentators are indicating that gold-plating is going on—then that is an issue that needs to be tackled by the relevant jurisdictions and the relevant electricity market regulators.

It is very important to make that point about what is really driving electricity prices in this country. There has been an underinvestment in the network for quite a significant period. It is important that it be addressed. It is important that it not be gold-plated. We have to do all that we can to help people at a household level deal with the impact of these price rises. Only $9 in every $100 that a household consumer pays in their electricity bill is going to be attributable to the carbon price, averaged across the country. To assist, the government have announced—and it is the only government acting in this way—a significant number of measures to assist households with these cost pressures. Specifically, with the introduction of the carbon price, there is $3.30 a week averaged electricity price impact and $10.10 assistance provided by the Commonwealth through tax cuts, increases to pensions, increases to family tax benefits, payments to many self-funded retirees, payments to many veterans and increases in a host of other Commonwealth entitlements. This is what is important to bear in mind. Clearly the coalition, having failed in its fear campaigning up to this in time and confronted now with some facts about actual increases, are now moving to try to scare people about impacts over the next five years. They cannot have it every way. The facts will out with the fear.

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