Bridget Archer (Bass, Liberal Party) Share this | Hansard source

I move:

That this House:

(1) acknowledges that under the Government, we have seen:

(a) a record eight consecutive quarters of year-on-year consumer price index reductions in retail electricity prices; and

(b) wholesale electricity prices fall for 17 months in a row; and

(2) welcomes the Government's strong action to ensure that Australian households and businesses have access to affordable, reliable and secure electricity.

The government is focusing on delivering affordable, reliable and secure electricity for Australian households and businesses while at the same time reducing emissions. This is central to our ongoing economic recovery and will support jobs, productivity and economic growth. We are investing $215.4 million in the delivery of affordable, reliable power across Australia. This plan is working. We have seen a record nine consecutive quarters of year-on-year CPI reductions in retail electricity prices, with household electricity costs falling by 11. 2 per cent compared to the same time last year. We have seen wholesale electricity prices fall for 19 months in a row from when we introduced the big-stick legislation in September 2019 through to the end of March this year. Quarterly prices are now at their lowest level in nine years, averaging $34 per megawatt hour across the National Electricity Market in the March quarter. That's more than 48 per cent lower than the same quarter in 2020, 74 per cent lower than in 2019 and the lowest March quarter wholesale price since 2012. In comparison, under Labor we saw 23 consecutive quarters of year-on-year increases. Our default market offer reforms mean that an average residential customer that was on the highest standing offers prior to the introduction of the DMO could now be up to $780 a year better off, while average small-business customers could be up to $3,105 a year better off.

In my home state of Tasmania, energy customers look set to see a four per cent drop in their electricity bills over the next three years, paying $70 less in 2023 than today. The Australian Energy Market Commission Residential electricity price trends report released at the end of 2020 shows that lower wholesale and environmental costs are behind the shift. Ninety eight per cent of Tasmanians are on regulated standing offers set each year by the Office of the Tasmanian Economic Regulator, with a cap set by the state government reflecting the Hobart consumer price index. The report showed that the costs were falling across two drivers of Tasmanian consumer bills over the period from the financial year 2020 to 2023. Wholesale costs are expected to go down by nearly 19 per cent or about $140 over the reporting period. This is an annual average drop of 6.6 per cent and is driven by new generation supply entering the National Electricity Market and lower gas prices. Environmental costs are also expected to drop by 11 per cent, or nearly $20, an annual average decrease of 3.8 per cent. This result is due to a decrease in large scale Renewable Energy Target costs as more renewable generation comes online.

Falls in electricity prices and ensuring our communities have access to reliable power sources is significantly helped by investment into areas such as renewable power. In our state, the Marinus Link and Battery of the Nation pumped hydro projects are great examples of what federal government investment can do through the $1 billion Grid Reliability Fund. This fund will not only ensure that our nation's world-leading deployment of renewables is integrated and backed up; it's ensuring jobs for Australian workers, lower emissions, a more reliable and secure energy market and lower prices for consumers.

Marinus Link will provide a second Bass interconnector between Tasmania and Victoria, which will increase energy exchange throughout the National Electricity Market as Australia continues to transition to cleaner energy. The project has also been assessed to be commercially viable and could deliver a $1 billion boost to Tasmania's economy through construction and operation. It's an incredible opportunity for our state as we look to invest in technologies to create a cleaner, sustainable energy market which will also benefit mainland energy users.

Battery of the Nation is a Hydro Tasmania project that's investigating and building our island's capacity as a hydro battery. It's about making better use of existing hydro power and power stations, while enhancing our ability to support the National Electricity Market with new infrastructure like pumped hydro power stations. Battery of the Nation is a key part of the solution needed to support a national energy market in transition. It will deliver multiple benefits to our state, giving Tasmanians the lowest possible power prices, creating much-needed jobs in regional areas and bringing broad economic benefit to Tasmania. This will ensure a safe, reliable, low-cost energy supply for all Tasmanians and thousands of megawatts of clean power to the mainland for a sustainable future we can all enjoy. On this side of the House, we're delivering the affordable, reliable power that Australians rely on.

See this speech in context