John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to Senator Birmingham, the Minister for Education and Training, representing the Minister for the Environment and Energy. Can the minister update the Senate of the importance of a secure, reliable and affordable energy system?

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

I thank Senator Williams for his question. I know that it comes, of course, from a passionate interest in terms of energy affordability and reliability, particularly for communities in the bush and for small businesses right around Australia. The Turnbull government's priority is absolutely to ensure the security, the affordability and the reliability of our energy systems. That's why we are taking sweeping action across the generation of energy, energy networks and energy retail systems. We understand that base-load power anchors our energy system, that it is an essential component in the generation mix and that we need to ensure we have enough dispatchable base-load energy when required to keep the lights on to keep the country running.

The Australian Energy Market Operator's dispatchability report released this week shows that there is a risk of shortages during summer peaks without targeted actions to provide additional firming capability. They are currently seeking to contract 1,000 megawatts of additional generation for the coming summer to make sure we have enough electricity for these peak periods, particularly in my home state of South Australia, and in Victoria. Consistent with the advice of the Australian Energy Market Operator and the advice of the Finkel review, the government is seeking to accelerate the work around the strategic reserve, which will beef up how AEMO currently contracts for reserve generation to manage summer peaks. With a major coal-fired power station—the Liddell power station in Senator Williams's home state of New South Wales—scheduled to close in 2022, AEMO has identified an additional potential shortfall of 1,000 megawatts from 2022 onwards. This is why the Prime Minister is in discussions with AGL on keeping Liddell power station operating longer, remembering that our first obligation to families and to small businesses around Australia is to ensure the stability and affordability of the energy system. Of course, that requires keeping base-load power, like that from Liddell power station, in the system for as long as possible.

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

Senator Williams, a supplementary question.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I thank the minister. Can the minister outline the steps the Turnbull government is taking to get a better deal on electricity bills for Australian consumers?

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

There's good news for around two million Australian households as a result of the action taken by Prime Minister Turnbull, Mr Frydenberg and the government. That's why two million Australian households will have clear advice and information on how they can get onto a better energy deal and how they can save up to $1,500 per annum on their electricity bills just by changing the type of plan that they are on.

Over the last little while, there have been more than 300,000 visits to the government's Energy Made Easy website, showing that consumers want to see better options in terms of the retail information that's provided to them. That's why government action is helping to make sure that they get that information. We have also, of course, introduced legislation to abolish the limited merits review process which can stop the network's ability to game the system, which has cost consumers across Australia some $6½ billion since 2008. We will bring that gaming of the system to an end.

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

Senator Williams, a final supplementary question.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Is the minister aware of any obstacles to the government's plans to deliver stable and reliable energy for all Australians?

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

You can see one of the obstacles from the contempt of those sitting opposite us, who don't take seriously the type of action that needs to be taken in terms of the retail markets to get information to Australian households; who don't take seriously the type of action that can be taken to keep the likes of Liddell open; who don't take seriously the type of new investment in facilities such as Snowy 2.0 that is being undertaken; who don't take seriously or help to expedite the processes that we're putting in place to fix the gaming of the network systems. Then you look at the Labor states and you can see the disastrous policies in South Australia; the ignorance of the Victorian Labor government in the way in which they're just setting and following the trends of South Australia; and the Queensland government, which see no end to the types of profits they think they can suck out of the energy system from their state-owned generators, and, of course, in doing so are charging Queensland energy customers a whole lot more. They're the risks. We're delivering the solutions. (Time expired)