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Question: Regional Business Energy Costs

11 September 2024

The Hon. R.A. SIMMS (15:19): I seek leave to make a brief explanation before addressing a question without notice to Minister for Regional Development on the topic of regional businesses and power.

Leave granted.

The Hon. R.A. SIMMS: As has been noted in this chamber this week, regional businesses such as Nippy's are reporting that their energy prices are crippling their operations. The Dairyfarmers' Association have also claimed that the average rise in electricity costs is 38 per cent, while an Australian Almond Board member, Brendan Sidhu, claimed that his business has seen a 60 per cent increase in energy bills. My question to the Minister for Regional Development, therefore, is:

1. What action is the Malinauskas Labor government taking to support regional businesses with soaring energy prices?

2. Will the government commit to a commission of inquiry to consider bringing our state's energy back into public hands, and, if not, why not?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:20): I thank the honourable member for his question. I think the topic of a potential commission of inquiry would probably sit, perhaps, with the Treasurer in the other place. I am certainly happy to refer that and bring back a response.

 

In reply to the Hon. R.A. SIMMS (11 September 2024).

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries):

1. I am advised that an 8.5 per cent cut in the default market offer for small businesses took effect on 1 July for this financial year.

This was the biggest percentage reduction in any of the areas where the Australian Energy Regulator sets the default market offer which is the ceiling price for retailers' standing offers.

Importantly, South Australian regional business pay the same electricity prices as businesses in Adelaide. The Malinauskas government supports this policy which ensures regional businesses in South Australia get a fair go. In some other states, city businesses get cheaper prices than regional businesses.

In addition, the Malinauskas government is inviting small business to apply for grants which enhance energy efficiency, and which will deliver long-term financial benefits.

Up to 8,000 small businesses will benefit from the Economic Recovery Fund, round 2, which is open now through to 29 November 2024.

Grants of $2,500 to $50,000 are available in matched funding for energy-efficiency investments.

The grants will be available for a range of assets, including:

  • Power supply and generation
  • Lighting and electrical
  • Energy-efficient appliances
  • Heating, cooling, and refrigeration
  • Water heating
  • Motors, pumps, and compressors
  • Building upgrades
  • Process automation, controls, and automation.

Small businesses are encouraged to go to the website of the Office for Small and Family Business for full details and advice on applications.

2. The Malinauskas government does not plan to hold a commission of inquiry into government ownership of the energy system.

The privatisation of the energy system has been a public policy disaster.

However, if the extremely complex and expensive task of resuming ownership were to be undertaken, there would be a high risk that if the Liberal Party were to be elected to government at some point in the future, they would reprivatise the system again.

When last in office, they privatised the operation of 277MW of generation which had been purchased to ensure reliability by being kept in reserve.

The Malinauskas government is focused on reforms to ensure consumers have clean, affordable, reliable energy.