Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training representing the Minister for the Environment and Energy, Senator Birmingham. Can the minister apprise the Senate of how the Turnbull government is prioritising a stable, reliable and affordable energy supply for Australian families?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I thank Senator Duniam for his question and acknowledge the fact that as a senator from Tasmania he has particular concern and interest in ensuring affordability and reliability for households and small businesses right across Australia in terms of their energy supply. Guaranteeing affordable, reliable, secure energy is a complex issue that delves right across the issues of energy generation, transmission and retail supply. It is for those reasons of complexity that the Turnbull government is taking action across a number of different fronts in relation to our energy policy, including dealing with gas supply issues in Australia. That is why the Turnbull government has taken action to drive down the price of gas by putting in place the domestic gas security mechanism, a mechanism to ensure that there is sufficient supply of gas to meet the forecast needs of Australian consumers, and by putting in place new rules to govern the transportation of gas to deliver lower prices, which we will see come into effect as a result of increased efficiency and liquidity in the gas market. These gas reforms are the most significant market reforms in that space in two decades.

Equally, we are taking action to stop energy companies from gaming the system in the National Electricity Market, through the abolition of the limited merits review process, which has allowed the network businesses to game the system and has led to higher electricity prices for some Australians. Indeed, the Queensland government has simply used their state-owned generators as a cash cow, abusing their place and their position. Equally, as a government we are investing in new technology and innovation, such as Snowy Hydro 2.0, and pursuing areas of demand-side management. At the recent COAG Energy Council, we got serious reforms agreed to and implemented, including the requirements for a three-year notice of closure for energy facilities, generator reliability and security obligations. As the AEMO chair, Tony Marxsen, said at that COAG meeting, 'It was the one where the energy ship turned around'—and, indeed, it is only part of our work in this complex area. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Duniam, a supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for the answer. I further ask: can the minister update the Senate on the Prime Minister's meeting with electricity retailers yesterday?

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

They had a cup of tea.

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

A lot can be achieved over a cup of tea. I would have thought Senator Cameron would acknowledge and know that. What was achieved yesterday was recognition that a significant proportion of Australians have had energy contracts lapse into a phase where they are getting a raw deal. As a result of the action taken by the Prime Minister yesterday, all customers who are on expired discounts will be contacted and informed about how they can save money on a better deal.

There'll be requirements for all companies to come back to the government and the ACCC to inform us about what they are doing to get families onto a better deal and how many families remain on those expired arrangements. There'll be new plain-English fact sheets to help people better navigate the energy retail market. There'll be a change to energy rules, requiring companies in future to inform customers when their discount benefits end and set out the dollar impact if they do nothing. There'll be new rules to ensure families on hardship programs will not lose any benefit or discount for late payments. These are real actions making a real difference to Australian families. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Duniam, a final supplementary question.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Is the minister aware of any obstacles standing in the way of the government putting downward pressure on prices and prioritising the reliability of the system?

Murray Watt (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Have a look in the mirror.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Try Tony Abbott.

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my left!

Murray Watt (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Have a look in the mirror. I'm looking at about 25 of them.

Stephen Parry (President) Share this | Link to this | Hansard source

Order, Senator Watt!

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

While the Turnbull government deals with generation issues and while we deal with energy market issues and while we deal with ensuring that the retail market functions far more efficiently and effectively in the future, those opposite continue to stand, it seems, by a policy platform of renewable energy targets that spells out targets but with no details of the cost impact for Australian businesses or Australian households and just what they would do to drive up energy prices. Their stated policy is still to kickstart the retirement of base load generators around the country, when we've seen that, when they do retire quickly, abruptly, it has a negative price impact on the market.

That's the reason that one of our government's reforms is to ensure that, if there are any closures in the future, there is an orderly process to those closures and that there is at least a three-year notice period. Those opposite allegedly want to kickstart those closures—something that would put prices up and reliability down, and hurt job security for many Australians. (Time expired)