Sarah Henderson (Corangamite, 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 on what the government is doing to lower energy prices for Australian households and businesses, including in my home state of Victoria? How would alternative plans affect energy prices?

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

I thank the member for Corangamite for her hard work in trying to drive down energy prices, because in Victoria they have the second highest prices in the country. In Victoria they cheered on the Labor government in the closure of Hazelwood. In Victoria, AEMO have indicated that there could be up to a 43 per cent chance of load shedding. That is a result of the Labor government in Victoria not putting lower power prices at the top of the priority list.

In contrast, the coalition government have been doing exactly that. We've intervened in the gas market to get more gas available to Australians before it goes offshore. We've abolished the ability of the networks to game the system, which will save Australian customers billions of dollars. We have secured a better deal for Australian households, as they've moved on to better market offers from the more expensive standing offers.

Our plan is working. The wholesale cost of electricity is down around 25 per cent this year, with the price last week at $68 a megawatt hour compared to $101 a megawatt hour at the same time the year before. On 1 July, power bills came down in New South Wales, Queensland and South Australia. And hopefully they will go down in Victoria when they do their re-setting in January of next year. This is saving households and businesses hundreds of dollars as well.

The National Energy Guarantee will consolidate this progress with the average Australian household seeing their bill come down by around $550 from the National Energy Guarantee and the other activities we have underway. The wholesale price will come down by about 20 per cent, which could be worth millions of dollars to energy intensive customers.

You don't have to take my word for it. Listen to what the Queensland chamber of industry and commerce, representing 400,000 plus Queensland small business owners, said:

At the end of the day, the National Energy Guarantee promises what we've all been waiting for—a downward pressure on electricity prices and policy certainty.

BHP, the biggest user of power in South Australia, said, 'We expect the guarantee will result in lower power prices'. The Business Council of Australia, representing thousands of millions of workers in various forms across the country, said, 'It's a practical, workable solution that prioritises reliable and affordable power. The NEG is a game changer and has the full support of business'. The Farmers' Federation said, 'Support from the National Energy Guarantee is a support for certainty. Our message is pretty simple, we want some policy certainty, for us it is the best game in town'.

While the Labor Party will accelerate the closure of coal-fired power stations—the Labor Party are obsessed with emissions—we are focused on prices and reliability. The National Energy Guarantee will do exactly that.

Mark Butler (Port Adelaide, Australian Labor Party, Shadow Minister for Climate Change and Energy) Share this | Link to this | Hansard source

My question is to the Prime Minister. Is the Prime Minister aware that the former Prime Minister, the member for Warringah, has ridiculed claims that power prices will fall under the Prime Minister's National Energy Guarantee saying, 'Well, frankly, pigs might fly.' Does the Prime Minister agree with the man he replaced?

Mr McCormack interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Deputy Prime Minister will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Independent assessment of the Energy Security Board and the almost unanimous views of industry groups and business leaders around the country all support the National Energy Guarantee as a means of ensuring that we will have more affordable energy. The honourable member knows very well what happens when you allow ideology and idiocy to take charge of energy policy.

Opposition Members:

Opposition members interjecting—

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

He knows very well what happens there in South Australia, where you have the most expensive and the least reliable electricity in Australia. The time has come for engineering and economics; the National Energy Guarantee delivers that. The Energy Security Board, comprising five of the most expert, numerate members of the community associated with energy policy, has delivered this policy—delivered this plan. It's a good one. It has more support across the community than any energy policy I have seen in decades. That's why it deserves the support of the opposition and all honourable members.