Electricity Prices
Reverend the Hon. Dr GORDON MOYES: I had intended to direct my question to the Treasurer but as he is on extended leave I direct it to the Minister Assisting the Minister for Finance, representing the Treasurer. Is the Minister aware of the recently granted 8 per cent per year increase in New South Wales electricity prices designed to compensate companies for reducing greenhouse gas emissions and purchasing renewable energy? Is the Minister aware that this represents a 26 per cent increase in current prices in three years? Is he also aware that before this increase 26,000 households had their electricity disconnected for non-payment last year? Will the Minister explain what moves the New South Wales Government has made to lessen the financial impact of climate change on electricity prices for those customers who are on low incomes?
The Hon. JOHN DELLA BOSCA: I thank Reverend the Hon. Dr Gordon Moyes for his question, in which he raises the serious matter of the recent Independent Pricing and Regulatory Tribunal [IPART] review of electricity prices in New South Wales. I must correct an assumption in his question. One of the matters considered in the Independent Pricing and Regulatory Tribunal determination is the need for pricing that will reflect increased investment in renewable energy sources and the associated changes that will be required. That is part of the tribunal’s recommendation but is not the only issue at stake. A number of other economic and network factors must be taken into consideration.
I point out to Reverend the Hon. Dr Gordon Moyes that, in spite of those innovations, our gross electricity prices are still 10 per cent cheaper than prices in Victoria and about 30 per cent cheaper than prices in South Australia. Indeed, in terms of advanced jurisdictions, New South Wales is one of the cheapest in the world in electricity terms, which stands us in good stead. One of the reasons the Independent Pricing and Regulatory Tribunal recommended the recent price increase is because we must make sure that the market is sustaining good returns and that the prices are stable over time for both consumers and businesses. That is the main reason for the price increase.
Reverend the Hon. Dr Gordon Moyes asked about vulnerable families and consumers who may be in financial difficulties. I do not have details regarding the disconnection of 26,000 households from the electricity grid last year. I will undertake to get further information about that matter for the honourable member and advise him of it as soon as possible. On the general issue that Reverend the Hon. Dr Gordon Moyes raised in his question, he should be aware that the Iemma Government invests about $130 million a year in the electricity safety net for consumers. That is a very big commitment to ensure that the socially vulnerable, the isolated and those who need assistance remain connected to the electricity grid.
We must consider two effects in this context. The first is the economic effect. We must have sensible pricing to ensure both jobs growth and future price certainty for consumers, and we must consider environmental issues such as those that Reverend the Hon. Dr Gordon Moyes mentioned in his question. And, secondly, we must invest in protecting the socially vulnerable from those price increases—and the Government is doing that. I will obtain further details about the numbers and circumstances in which the households that the honourable member mentioned were disconnected from the electricity grid and advise the House of them as soon as practicable.