Ann Sudmalis (Gilmore, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for the Environment and Energy. Will the minister update the House and describe the action being taken by the government to ensure an affordable supply of energy for hardworking families and Australians? How does this compare with alternative approaches that would hurt both families and small businesses in my electorate?

Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

I thank the member for Gilmore for her question. I know that she is committed to lowering the power prices for the businesses and the households across her electorate.

We know that the Turnbull government today has announced a significant move to abolish limited merits review. If this had been abolished previously, customers would have been better off to the tune of $6.5 billion. We tried to abolish it through the COAG process, but were blocked by the states. This unilateral action will lead to lower electricity prices. We have also taken major steps to restrict gas exports after the Labor Party gave a green light to export two-thirds of what we produce, and that obviously led to an increase in electricity prices.

The Prime Minister's announcements today have been warmly welcomed by a large number of stakeholders. Energy Consumers Australia has put out a press release titled 'Energy consumers welcome the significant leap forward on energy'—'We are pleased to see the government put downward pressure on network prices and taking steps to increase gas supply for the domestic market.' The Grattan Institute has said, 'Today's decision to support the elimination of limited merits review on network pricing will positively impact electricity prices.' Manufacturers in Australia have welcomed the Turnbull government's intervention in the gas market to protect jobs and urge the state governments to encourage their own gas development, which currently they are not doing. So the measures announced today, on top of the previous measures to get the ACCC to investigate the retail pricing system and network, and the work we are doing through the COAG Energy Council to reduce the costs of the transportation of gas, are all very important.

I am asked about those opposite. The Labor Party's track record includes the doubling of electricity prices when they were in office. The Leader of the Opposition turns his back, but he was part of and central to a government that led to a doubling of electricity prices. We got the cash for clunkers, we got the citizens assembly, we got the pink batts and we got a $15 billion carbon tax. That was the price of Labor's folly on electricity. Now they have a 45 per cent emissions reduction target, which has been described by the Business Council of Australia as unnecessary and risky, and they are giving cover to Labor states that are blocking the development of their gas reserves, which would be important to reducing electricity prices across the country.

The member for Port Adelaide said that what happened in South Australia was a hiccup. We on this side of the House say that we must do better. We need to lower electricity prices and get more stability in the system. Today's announcements are a very positive step forward.