Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Hansard source

I am not at all convinced that the minister has given a clear answer on whether the government accepts that if there is a reduction in forward contracting for electricity there will be a commensurate flow-through of increased price and volatility in the electricity pricing market. It is a pretty straightforward proposition; it is one that the government can and has rejected on whether or not that will happen. But there is conflicting modelling presented by the Energy Supply Association of Australia—conflicting modelling that says the opposite to that which the government's Treasury modelling has assumed. So, if the government's Treasury modelling is wrong, and instead the ACIL Tasman modelling done by the ESAA is correct, then do you accept that there is a risk that forward contracting could be reduced? The particular question I was asking on this occasion was: if that scenario eventuates, if there is a reduction in forward contracting for electricity, does the government accept that that means there is a potential for greater volatility and higher prices in that market? It is fairly straightforward and, if you have answered it before, do the chamber the courtesy of answering it again. But from your answers previously I cannot see a clear-cut and direct answer to that very direct question.