National Electricity (Victoria) Amendment Bill 2020 - Legislation

04 March 2020

I rise with absolute pleasure to speak on the National Electricity (Victoria) Amendment Bill 2020. That is because before becoming the member for Tarneit I did something a little bit different. I spent over a decade working across this country on electricity regulation and policy reform, and I will say straight up: this bill is going to be a game changer for this state and the future of Victorians and our environment, which I note that side of the house has failed to talk about. It makes me laugh, and I will start. I do not often laugh in this chamber at some of the contributions that are made by those opposite, but I will start by saying that it did make me laugh listening to the contribution of the member for Warrandyte talking about the need to plan properly for the future and his comments around efficiency and making the tough decisions governments in power need to make around new generation coming into the grid.

What is most hilarious is that the only benefit he seems to see in renewable technology is that they make good announcements. They look really good in a media announcement. I think that in itself says it all about what that side of the house think about renewable technology. But none of us on this side seem surprised. But of course you would only be seeing that, because it is your team in Canberra that has created so much uncertainty in this country, in this market, that you have stifled it. For years and years your mates in Canberra have refused to do anything. The one Prime Minister that you guys had that gave the industry a glimmer of hope that common sense might prevail to move past the inertia that your crew has paralysed this country with, you got rid of him. You replaced him with someone who lives in a fantasy world. So for the member for Warrandyte to stand here and try to lecture us on planning, on certainty, on efficiency and, dare I say it, a world in which renewable technology exists and produces clean energy is absolutely ridiculous. I say to the member for Warrandyte—and I put my hand on my heart—let us hope that the closest you ever get to shaping the energy policy of the state is with the audacious contribution that you have just made in this place. Reach over and switch on the light closest to you, because it is time to wake up and see that we are in the next decade—it is 2020.

Since our government was elected in 2014 we have been absolutely resolute in our determination to provide reliable, affordable and clean energy for all Victorians. We have listened to people; we have listened to them from far and wide. We have heard loud and clear that the need to introduce reforms to make energy fairer is what our communities want, and that is exactly what we have done over the past five years. We have introduced major reforms to make energy fairer. We have slashed standing offers through the Victorian default offer, and we have made it easier to find a better deal through National Electricity Law, a website that we know thousands and thousands of Victorians are using to get better deals to reduce their energy bills.

We have worked tirelessly with our private generators to make sure they are available when we need them most, we have pushed for new rules to allow the energy market operator to find cheaper, more reliable sources of emergency supply, and of course, a personal favourite of mine, we have supercharged the deployment of renewable energy right across our great state.

I was recently having a conversation with colleagues reflecting on just how complicated our energy law and regulatory frameworks really are. Yes, they are sentiments I absolutely agree with, because I have been listening to those kinds of remarks for over 13 years. This is exactly what communities right across Victoria and our nation also think about the way in which energy in this country is regulated. The National Electricity Law and the rules are an absolute beast of legislation and regulatory framework to get your head around, which is maybe why those opposite can never seem to get their heads around them without reading the notes that they seem pinned to in this place..

But if we put aside those complexities, it is important to remember that this bill comes about after a long observation of Victoria’s energy supply, particularly over the past year. In 2019 we saw how strained our energy grid can be during the summer period, and it is only getting worse—it is definitely getting worse—which is exactly why we are making these legislative amendments. Most recently, the bushfire season caused major disruptions to our energy grid. These bushfires have reinforced the need to make our energy system more secure and more reliable to accommodate the changing face of summer.

I am sure we can all remember the end of January last year, when we had significant blackouts—and, I remind those opposite—in the middle of hot weather days. What we know is that those power failures were coming from coal-powered energy generators, and it was our investments in renewable energy that came through for us. This is not a matter of saying that coal-fired generators are bad, let us get rid of them. This is saying that, yes, we use them, but they were not able to be used in the middle of a bushfire emergency, and renewable energy came through for us.

Climate change is a very, very real and very serious threat to Australia’s energy system and the industry. In my job before coming here I saw exactly how year after year the ‘hottest year on record’ impacted the sector’s ability to transmit electricity to consumers, to customers, right across Victoria. It is becoming clear that our energy supply is becoming more and more outdated.

Anyone that comes from the energy sector will agree that the pace of renewable technology has picked up. In fact it has been ramping up for years and years, and the advancements we are seeing in this innovative space are now outstripping the ability for the legislative reform processes to keep up. What we see in the sector today is renewable energy generators pumping out clean energy across our state, and it is not shocking to know that there are many, many more developers eager to build and get involved in these new and emerging markets. We have major investments in grid-scale batteries, energy efficiency and household solar power that are transforming the way in which households use their power.

It is pretty interesting for me because it does not feel like a long time ago, although I reflect now that it probably is, that I was sitting around a table with electricity engineers having a very passionate debate over lunch about the rollout and the uptake of solar panels in every home across our country, and about electric vehicles. Would they be popular? What would the uptake be like? What would the price tipping point be? I say that these engineers were passionate because, bless them, electricity engineers are some of the most passionate and focused individuals I have ever worked alongside. If you give them a problem, they solve it—absolute legends that they are. Many of them have now retired, and it is incredible to think that the future that we once talked about has suddenly arrived, and we are now looking to see what is next on the horizon.

It is important to understand that progress in the renewables sector relies on a robust transmission grid that is evolving to meet the demands of the energy system and is able to efficiently move electricity from where it is produced to where it is needed. That sounds really simple. Well, it should be, but unfortunately we are increasingly experiencing the national electricity framework letting us down. Investment in the transmission grid is just too slow, the process is too narrow and the best interests of Victorians are too often forgotten.

Let me say it straight: as leaders of this state we cannot continue to sit by and do nothing while we face such extraordinary challenges that come our way. We know that the simple truth is that the national regulatory framework for approval of transmission upgrades has too often proved itself not to be fit for purpose. Back in the day when I was a senior regulatory analyst, I spent years writing policy submissions lobbying for reform of our national framework. As the world of renewables started to grow here in Australia, that became harder and harder, because changes to the National Electricity Rules, the laws and regulations took years. They simply were never originally drafted for today’s market and technology.

This bill is going to change that. This bill is going to shake things up. We are not going to be relying in certain circumstances on the regulatory investment test for transmission. It is an incredibly complicated test. It takes a long time to get through. There are a lot of hurdles to get through. It is a lot more complex than those opposite pretend that it actually is. This bill amends the National Electricity (Victoria) Act 2005 to allow the Victorian government to bring online more timely upgrades to Victoria’s transmission system. I wholeheartedly commend this bill to the house.