Dai Le (Fowler, Independent) Share this | Hansard source

Once again, I stand up in this House to speak out about energy. As we know, it's not money that makes the world go round; it's energy. Energy is a critical resource to our society and economy. Without it, we are doomed. It has been explained to me by industry experts that, in the energy system—electricity and gas—the Australian Energy Regulator is supposed to be the cop. The AEMC, the Australian Energy Market Commission, makes the rules; the AEMO, the Australian Energy Market Operator, and the electricity networks are supposed to implement the rules; and the AER is supposed to use its powers to enforce the rules. So it's a very complex network of organisations, institutions and agencies that manage our energy market.

The AER was called a 'partially effective regulator' by the National Audit Office in 2020. In particular, the ANAO determined that:

Performance reporting arrangements have not enabled the AER to demonstrate it is meeting its purposes, such as promoting the efficient operation of energy services for the long-term interests of energy consumers with respect to price, quality, reliability and security.

These words are special because they directly reference the National Electricity Objective, the NEO, which is the most important text in the electricity system. The National Energy Objectives are meant to guide all regulation. The AER is supposed to make decisions and take action to make the NEO happen. It doesn't, for lots of reasons. The enforcer of the rules has not been enforcing the rules, so the NEO isn't being delivered and prices keep going up more than they should. Maybe one of the reasons is that it is underresourced. It has said that to many people for a long time, so maybe this extra resourcing will fix that—maybe. It depends on what the AER does with this extra money. The AER will be given $100 million, up from $6 million, and an increase in staffing numbers from 15 to 400 employees. That's a lot of money and a lot of people.

So what is the plan to be a better enforcer of rules and a better promoter of the National Energy Objectives? Does the plan pass the sniff test? Will the government explain why they think an increase in funding and staffing can help lower electricity prices? Will the plan work? Who is keeping them accountable for the implementation of the plan? How is the effectiveness being measured? When will we see results? In particular, how are they going to make AEMO, the networks and the big retailers—Origin, AGL and EnergyAustralia—better deliver the National Energy Objectives? This is where the big money is going, with every dollar of it from consumers.

Politically, the networks are ascendant right now. Their industry organisation, Energy Networks Australia, has lobbied the government very hard and is getting away with more and more consumer dollars through government policy—Rewiring the Nation, community batteries, ring-fencing waivers and the current AER consideration of gifting the DNSPs money to install behind-the-meter batteries, which I'm happy to present information on—and also through their regulated return processes. AEMO is also running amok, with their budget ballooning from $310 million pre COVID to $740 million now. That's more than two times as high—crazy!

Regulation is a matter of utmost importance to the people of Fowler and all Australians due to its impact on efficient energy markets and the urgent need to tackle rising energy costs. This issue cuts across every household and business in our country, and the current chaotic system demands immediate action. As the minister stated, the intention of this bill is to amend the Competition and Consumer Act 2010 to separate the Australian Energy Regulator from the Australian Competition and Consumer Commission and establish it as a non-corporate Commonwealth entity with operational control over its staff, resources and governance arrangements.

Right now, energy pricing feels like a lottery. On Monday the price might be low, by Wednesday afternoon it's sky-high and by Thursday lunchtime it's in the negatives. This unpredictability is not just inefficient; it's unsustainable. How can families and small businesses budget and how can manufacturers plan when our energy market operates in such chaos? The lack of stability is costing Australians dearly.

The government has so far announced $50 billion to get clean energy technologies into the market, but, for the most part, it can't get them out the door. There are all these announcements, big headline announcements, that the government has made, and this ignores whatever portion of the $230 billion Future Fund will go into renewables. I'm sure I'm missing other funding announcements as well.

Why not prioritise giving to consumers, houses and small businesses to adopt, host, trial et cetera new clean energy technology? Everyone wants lower bills. They are struggling at this very moment, as we speak. People are telling me that their energy bills have increased dramatically—not only that but insurance bills, rent bills, grocery bills. Everybody is telling me that, especially in Fowler—I don't know about other electorates—and in Western Sydney.

We need to get things right. The nice thing about clean energy technology is that the stuff that is proven to work—solar, batteries, cars, heat pumps—can be spread out, and it makes coal and gas mines less profitable and, hence, less likely to proceed.

Since my election I have repeatedly asked the government what it plans to do to bring down electricity prices and create certainty for consumers. I asked the government in August last year what fundamental changes it would make to the energy pricing mechanism and the broken electricity market. I'm glad to see they have now announced an energy expert panel to study the situation and recommend reforms, but we need actions now. I hope that, in setting this independent body up, working Australians will see their energy prices decrease.

Debate adjourned.

Sitting suspended from 16:52 to 17:04

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