Nick Xenophon (SA, Independent) Share this | Hansard source

Sorry. To clarify in terms of what the minister said my understanding of the way that IPART actually works is that it does not release a draft determination lightly although it has not been publicly released. The media reports relate to their draft determination, which is what the New South Wales government tried to shove to one side. My understanding is very clearly this: the draft determination and the final determinations rarely change apart from perhaps some minor amendments. The draft determination is not reached unless there has been extensive consultation with consumers, industry and all the key stakeholders. If these reports are correct, that is indeed very sobering.

As I understand it, media reports out of the Sydney news tonight indicate that the New South Wales government is saying that, if prices rise more than first anticipated, the Commonwealth will have to pick up the tab for that. That is something that concerns me. Minister, given that Senator Abetz has raised these issues, I am happy to ask these questions in the context of amendments I will be moving on an alternative intensity based scheme, but I will put them on notice now. Can the minister confirm that the government’s estimate was a seven to 12 per cent increase in electricity prices? This seems to be nearly three times, up to over four times, that amount. If IPART is correct and prices do rise to the extent indicated, will the level of compensation still cover consumers as planned? If IPART is correct, won’t that mean a very substantial blow-out in the budget outlook, given the level of compensation?