We need energy price relief

During the first Question Time of the new Parliament, Abigail asked the Minister for Energy about energy bill relief.

Ms ABIGAIL BOYD (13:39): My question without notice is directed to the Leader of the Government, and Minister for Energy. In New South Wales households are paying higher energy bills than their Victorian counterparts in part because of the permitted profit margin under the national energy price regulation, to which New South Wales is a party. Will the Minister commit to following the lead of the Victorian Government by boycotting the national energy price regulation and enable New South Wales to set its own lower charges and permitted retail margin in order to provide urgent energy bill relief while also putting the brakes on inflation?

The Hon. PENNY SHARPE: We have some big challenges ahead when it comes to energy. One of the very important things in relation to this is that New South Wales has understood in a bipartisan way over the past few years that we are facing significant price hikes, partly as a result of international factors over which we do not have any control. We were also going through the largest transformation of our energy sector since the industrial revolution. I cannot understate how important that is and how challenging it is going to be. Part of the issue with that is the impact that it will have on prices for ordinary households. I was very pleased that the Treasurer gave an overview of what we are doing in relation to rebates. Also, as we are coming into government, we are finding out why there are different arrangements when it comes to what we are signed up to in relation to pricing and other things.

The Government expects that the Australian Energy Regulator [AER] will release its direct market offer very soon, and it has been drawn to our attention that there are different arrangements in relation to Victoria and New South Wales. I have sought advice from my department and from the AER about what—

[An Opposition member interjected.]

Are you finished?

The PRESIDENT: Interjections are disorderly, as is responding to interjections.

The Hon. PENNY SHARPE: I am sorry. I will try to stop doing that. It is a habit of a lifetime. The point here is that I have asked the question and we need to have the answer. The Government is absolutely committed to the transition that we need to make not because it is something that we have chosen. It is something that we need to do for two reasons. Firstly, because we need to decarbonise the economy to address climate change, which is an existential threat to the planet, and, secondly, because energy is one of the largest emitters in New South Wales.

If we are serious about net zero, which members on that side of the House say they are—in fact, the vast majority of members of the House say they are—we have to be up-front about the challenges that are ahead. My approach to this is going to be up-front and honest. The Government is seeking advice around that, and I am happy to talk to the member about it. But our commitment remains absolutely true—we need to get to net zero by 2050, transition to renewables as quickly as possible, and do everything necessary to drive down prices for households and do whatever we can to make sure that they are part of the transition, not locked out of it.

TAX SUPERPROFITS TO PAY WORKERS MORE

NSW is missing out on tens of billions of dollars. By introducing a progressive coal royalty structure similar to the one in Queensland, we would have raised an extra $20 billion last year.

The NSW Government owns and controls, on behalf of the people of this state, the rights to the minerals and materials that naturally occur in NSW land.

Huge fossil fuel companies are only able to extract and sell these commodities with the consent of the State. It’s time they paid a fair price for that privilege.

The fossil fuel industry has made hundreds of billions of dollars out of their cosy relationship with governments. Granted permission to extract and sell coal, these large multinational fossil fuel corporations pay just over 7% in royalties back to the people of NSW – keeping the rest as mega-profits for themselves. These companies have a track record of taking more than their fair share and leaving communities suffering and stranded with poisoned groundwater, devastated landscapes and a stranded workforce when it suits their business models.

Globally, the hyper-inflation of fossil fuel prices driven by price-gouging opportunism and war profiteering from Putin’s invasion of Ukraine has delivered record windfall profits to these already obscenely wealthy corporations. In the last year, NSW coal exports totaled over $70 billion dollars, but the people of NSW will only see about 7 cents in every dollar, or about $6 billion dollars of that amount.

Rather than going toward schools, hospitals and public infrastructure, billions of dollars went into the pockets of multinational mining corporations. The Greens believe there should be more money for schools and hospitals and less for mining billionaires.

Sign our petition calling on the NSW Labor Government to increase coal royalties to invest in communities.

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We need energy price relief

TAX SUPERPROFITS TO PAY WORKERS MORE

Sign our petition calling on the NSW Labor Government to increase coal royalties to invest in communities.

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