ISP Review Clarity
My question is to the Minister representing the Minister for Climate Change and Energy, Senator McAllister. I note the announcement this week of an expert panel looking at reviewing the national energy market. The terms of reference weren't very specific. Are you able to share with the chamber exactly what the panel has been tasked to review and make recommendations on?
Senator McALLISTER: Thank you very much for the question. I don't have the terms of reference with me, so I'm not able to share that with you. But I can make a broad observation, which is that the energy system, as you entirely understand, is undergoing a very significant transition. That transition is underway. Increasingly, a very significant amount of the capacity in the grid is renewable, and we are seeing greater and greater strain placed on the coal-fired power stations, which once formed the core of the electricity system but are increasingly coming to the end of their life. The way that the rules of the national electricity market and all of the infrastructure around that market are organised needs to be tailored to make sure that the investment conditions are suitable. We'll continue to encourage investment in the technologies that we know are the most affordable technologies for new generation, and, of course, that is firmed renewables.
We've had this conversation many times in this chamber. It remains the case, despite the assertions of those opposite, that the cheapest form of new generation is firmed renewables. It is considerably cheaper, by the widest margin, than nuclear energy. I note that the coalition have repeatedly made promises to reveal their costings. I think it was in September that Mr Littleproud told us that all the costings were, in fact, practically done for all purposes and that this would all be out in the public domain by November. The clock is ticking! We have a handful of days left in November. Where are these costings that Mr Littleproud said were ready back in September? It might even have been August. This morning Mr Taylor was asked about this, and Mr Taylor said, 'I never said you'd have them by Christmas; you might get them before the election.' Honestly!
Senator VAN: As you would also be aware—I bring to the chamber's attention—earlier this year, the Energy and Climate Change Ministerial Council released a review of the ISP. This review recognised quite a few gaps. For those following along, it was apparent that these gaps not only need to be addressed but should have been addressed before now. Will the panel be making recommendations on those gaps?
Senator McALLISTER: As I indicated in my response to your primary question, I don't have the terms of reference for the panel here with me. I will say this: there is a power of work underway to deal with the many legacy issues that arise from a decade of neglect and dysfunction under the previous government. Some of that—I know this will be of interest to you, Senator Van—is the recently released information from the Australian Energy Market Commission about the approach to smart meter roll-outs. I think you have asked me on a number of occasions about how that is going to be handled. The new rule in particular includes some very important customer safeguards, including protecting customers from potential cost risks by prohibiting any upfront costs ahead of a smart-meter installation and, particularly importantly, introducing new explicit informed consent and notification requirements ahead of tariff changes
Senator VAN: As you are no doubt aware, the Senate is currently conducting an inquiry into energy planning and regulation. Its report is due to be tabled before Christmas. Will the government refer its findings and recommendations to the panel to be formally considered?
Senator McALLISTER: I will leave a decision about that matter to Minister Bowen. I can't pre-empt his decision or indeed the findings of the committee that you are involved in, Senator. I can say to you that, of course, we want the panel to draw on the widest possible range of information in contemplating the issues that we've asked them to think about. At the core of this is a need to ensure that we understand how the grid and the market will operate together to secure the interests of energy users and consumers as we continue through this transition. We've got a lot of policy settings in place to 2030, but the transition will continue beyond that. We understand that policy reform is required to make sure that the investment that is required continues to flow into that sector.
