Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Senator Wong. It follows revelations reported yesterday by Sky News that the Australian Energy Regulator has warned the Albanese government that power prices will rise by up to 50 per cent next year. Even Labor's own budget tonight reportedly concedes that there will be a price rise of between 30 and 40 per cent. Minister, will you now admit that Labor's election promise—made 97 times during the campaign—to Australians that their power bills will be cut by $275 annually will never be delivered?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think there is no doubt we all know that Australians are grappling with the impact of rising energy costs—Australian households, Australian business, Australian industry. Those opposite might like to push this aside, but the world is dealing with the most significant shock to energy markets in 50 years due to Russia's prolonged attack on Ukraine. Russia's willingness to weaponise energy has caused havoc in global markets, and it has sent coal and gas prices through the roof. Domestically, what else are we dealing with? A decade of denial and chaos in energy policy which saw four gigawatts of dispatchable energy exit the system. Guess how many gigawatts came in under you? One. Not only have we got a global economic shock and a global shock to energy markets but we are dealing with a decade in which you ensured that supply exited the market. That's the reality.

The P:

Minister Wong, please resume your seat. Senator Henderson?

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Communications) Share this | Link to this | Hansard source

President, I just ask you to remind Senator Wong to direct her comments through the chair. Thank you.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Henderson. I will remind the minister to direct her comments through the chair.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

But I enjoy looking at Senator Duniam so much! We have a nice exchange across the chamber.

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order!

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

He's one of the people on that side I have some regard for, and he's always happy to have a chat across the chamber. But if it offends people I will turn this way; if they prefer that I talk to the President, that's fine. As I said, we are dealing with energy prices which are rising much faster than was ever anticipated because of the significant shock to energy markets, the weaponisation of energy by Russia, which has caused havoc in the global markets, and also a decade of chaos, which has seen so much dispatchable capacity leave the system and only one gigawatt enter to replace losses.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Duniam, your first supplementary question?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

The minister didn't mention $275 once. On 10 October, Alinta Energy CEO Jeff Dimery said:

What cost $1 billion to acquire is going to cost me $8 billion to replace. So let's talk about that and still explain to me how energy prices come down …

Yet a Labor Party source claimed yesterday that the Russia-Ukraine conflict was responsible for these massive power price increases. Who's correct? Is it the Labor source blaming the conflict from well before the election or Mr Dimery, one of our foremost energy experts?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think I've actually answered that substantively in my first answer, which pointed to the various factors which are driving up energy costs. You might like to pretend that the government and the country are not trying to grapple with what every country in the world is. If you talk to Germany about what is occurring in relation to energy prices, you will see we are not the only government or the only people who are having to grapple with rising energy costs. The one fact that those opposite just cannot accept is this: renewables are cheaper. Renewables are cheaper, and the fact is that you're allergic to that fact. That you spent so many years fighting each other because you didn't want to accept the facts is, in part, why Australia is in the position that it is in.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Duniam, your second supplementary question?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

In view of these huge increases in energy prices, alongside all the other cost-of-living increases Australians are experiencing, and in the face of a refusal to back in the promise to cut power bills by $275 annually, what does your modelling show about how many Australians will suffer energy poverty under your government's policies?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

(—) (): What I can say to you is that the government will deal responsibly with the mess in energy markets that we inherited from you. Unlike you, our response is not going to be to try and hide price increases. Let's remember your great response. The great response of those opposite—the coalition—to rising energy costs on their watch was Mr Taylor making sure they were hidden from the electorate before the election. So I can tell you this: we will go about trying to deal with the cost increases—the result, in great part, of the shock to global energy markets and the mess in the energy markets—responsibly and sensibly. And we are going to do it in a way that actually tries to reform energy markets. You have already seen that. You've already seen that with the Marinus Link, which was announced just last weekend. (Time expired)