Energy Ministers' Meeting press conference

CHRIS BOWEN, CLIMATE CHANGE AND ENERGY MINISTER: Well, thanks for coming, everyone. I'm delighted to be joined today of course by Australia's energy ministers state and territory who've been meeting all day today here in Melbourne. And of course, we're also joined by Minister Koutsantonis via video link. And this meeting comes of course at a very important time. Firstly, in relation to two decisions we've made today, we have approved the amendment to the national gas law, which we have been talking about for some time to ensure that our market operator AEMO has powers they need to ensure reliable supply of gas on the East Coast market over the coming winter and beyond. This was an issue that was identified during the height of the crisis a few months ago. We agreed amongst us that this had to change and we have authorised a law change today. It will pass in the normal course of events through the South Australian parliament, and therefore make its way through to become the law of the land. We've also made other amendments to the national gas law, and the National Energy Retail Law in relation to hydrogen and renewable gases, an important part of the work that we've been ongoing for some time. And of course, we noted that the federal budget this week, has allocated a good deal of money to ensure that the things that we've agreed get implemented, including the allocation of $157.9 million to facilitate our priority work on the National Energy Transformation Partnership, which is bringing together all the work that the states and territories are doing, bringing together the ISP, bringing together the federal government Albanese government's plans into one document, what I call the ISP on steroids to make sure that we have a roadmap going forward for our drive to a renewable economy, an economy which has cheaper energy and cleaner energy.
 
But of course, this meeting comes at a very important time. And we were very clear in the budget this week about the pressures on energy prices. And my state and territory colleagues have, in every single instance also been clear about that as well. We had an update from the market operator, from the Australian Energy Regulator, from the Australian Energy Market Corporation and the Energy Security Board. And those updates were very clear. The crisis around energy markets right around the world is of course having an impact in Australia. That crisis is led by elevated coal prices and higher gas prices, which are feeding through to Australia just as they are feeding through to every country in the world. This is a direct result, not only of the illegal and immoral invasion of Ukraine by Vladimir Putin, is a direct result of his weaponisation of energy. Russia is the world's largest energy supplier and their withdrawal from the world market, of course, is going to have an impact right around the world. And that is what we're seeing being implemented right around the world. State and Territory ministers agreed today, together, of course, with me that we will not stand by and watch this flow through to the Australian people without taking action. We've agreed that we all have levers at our disposal and we intend to carefully, methodically use those levers wherever it puts downward pressure on prices. We agreed that we'd work closely together. We agreed that the transformation of our economy to become a renewable economy is more important than ever, not only because of our emissions reductions target, but because we all agree the cheapest form of energy is renewable energy. And the faster we get transmission built, the faster we get renewable energy built, the faster we get the storage built, the better our country will be. And we're all at one in that endeavour.
 
And of course, we noted collectively, the progress we've made. Tasmania and Victoria and the Commonwealth working together on Rewiring The Nation, Marinus Link, Kerang Link and the renewable energy zones, and there will be more to come. And the Commonwealth will partner with each state and territory, wherever possible, on Rewiring The Nation in the same cooperative spirit. But let me make it clear. We agree everything needs to be on the table, we've committed to consider all options on stronger action, on stronger regulation as a matter of urgency. We will act carefully. We will not act without strong evidence that whatever we do and contemplate will actually work to give relief to Australian families. And we will act in concert, we will ensure that whatever state and territories do, they will be working in concert with the Commonwealth and vice versa. The Prime Minister, the Treasurer and I have made it clear all week that the first step was to identify very clearly the issue and be upfront with the Australian people about the challenges and the pressures. The second step is for the Commonwealth to look at all levers at our disposal, both directly as the government and through our regulators and to ensure that that work is done and the other step as occurred today is that the states and territories coordinate and consult with each other and with the Commonwealth. And the Australian people need to know that we are one team on their side, ensuring that they are not paying any more for energy than they need to in the face of the most urgent and pressing global energy crisis since the 1970s. The IEA has said, this is the first truly global energy crisis and I think they're right. And our system is under pressure. But importantly, the system also needs the states and territories and the Commonwealth are one team working together and we look forward to having more to say.
 
I'm going to ask our host, Lily D'Ambrosio to say a few words, then Minister de Brenni and then anyone of us are happy to take questions. I do note that several ministers have flights to catch. So please just bear with us as we try and get through this as quickly as possible. Lily.
 
LILY D’AMBROSIO: Thanks very much, Chris. And I've been very delighted to be the host state for the energy ministers meeting today. And certainly, we've had the continuation of a very productive, proactive and collegiate response to the challenges that we've got in front of us, but also the opportunities. People will remember, of course, at the first meeting of energy ministers under the new national government kicked off in July, it started on a positive footing. It continued on a positive footing at the August meeting, and it continued today. And we know of course, that when we work together across the jurisdictions, we can actually make sure that we can be agile and responsive to all of the critical issues that confront our nation, as we manage our way through what is an energy revolution, a decarbonising revolution, towards clean energy, making sure that prices are kept in check as low as possible, and capturing all of those opportunities that are with us.
 
So we had a wonderful day where we were able to share and update each other on the ambitions that we each have added together, they make for a mighty mighty effort, and real growth in terms of our ambition together. Now, of course, being on the one page is also extended, of course, to the current challenges that we’re confronted because of those global price hikes. For gas in particular, and of course, black coal. We know that the cost of gas production, the actual cost to make gas to bring it to market has not increased, yet, gas producers have doubled the cost of it, of selling it to consumers. This can only mean that gas producers are making obscene profits at the expense of every household, at the expense of every business, at the expense of every manufacturer. This has to stop. And today, we've had very, very fruitful discussions about an agreement that we need to move with urgency to the solutions that will enable us to put a brake on this obscene set of behaviours, it has to happen. Obscene profits should not be allowed to continue, not at the expense of Victorians, not at the expense of Australians. We've agreed that all options need to be considered and action taken urgently, certainly at a national level. All of us though, combining our efforts to achieve that. Certainly, in terms of Victoria's views, is that we are likely to need strong regulatory intervention, including a cap on wholesale gas prices. But of course, importantly, a national approach is the only way to do something about this and do it in good time so that we can actually pull back, pull back the increasing rate of increases on gas prices and of course, electricity prices. So we're absolutely delighted that the Commonwealth is very much going to move with urgency on this matter. And we collectively, of course, have agreed that we need to be all in together to be on the side of every consumer, every gas consumer, every power consumer, because what we've seen happen in the last few months, which we know will only grow unless strong actions taken and that's exactly what we've all signed up to do today.
 
MICK DE BRENNI: Well, firstly, to our host Minister D'Ambrosio, I want to acknowledge her leadership for setting storage targets, renewable energy targets, and of course, public ownership. It is to be commended. Now Australians, understandably, are worried about the impact of the ongoing war in Ukraine and what that means for forecast energy prices. The scenario as others have said, where companies can charge prices that means super profits that end up being paid for by Australian households and businesses, when those resources are owned by Australians themselves, is simply unacceptable. Every piece of independent expert advice that came to us today told us three things. Firstly, that prices are forecast to be higher because of the global energy market. Secondly, they told us that coal and gas are responsible for setting those high prices, most of the time. And thirdly, they told us not withstanding that supply is adequate and reliable here in Australia. That all adds up to this one conclusion. That on energy, Peter Dutton is dead wrong, dead wrong. Today, as we've heard from our colleagues, and Minister Bowen, who chaired the meeting today, that we've committed to continue to work collectively to deliver more affordable prices, cheaper power prices for all Australians. And this is only possible by working together under strong leadership. I'd like to commend Minister Bowen on this leadership along with my fellow energy ministers.
 
CHRIS BOWEN: Thanks Minister. Questions?
 
JOURNALIST: Inaudible.
 
CHRIS BOWEN: Well, we won't wait a day longer than we need to, but nor will we act before we are satisfied we've assumed all the expert evidence and advice from our regulators, from our respective departments. So certainly from the Commonwealth level, we will work that through expeditiously, but prudently and methodically. And of course, when we act, we'll also be looking to explain the implications of those actions. We will be talking to regulators like the ACCC and others to ensure that we've got it right. And I'll be talking to my state and territory colleagues as we go through that process. And as I said before, the state and territory ministers will be doing the same with me.
 
JOURNALIST: Are you considering price caps?
 
CHRIS BOWEN: I'm not going to rule things in or out at this point.
 
JOURNALIST: Russia invaded Ukraine in February, we obviously went through an energy crisis just a couple of months ago, consumers already feeling the pinch. Is it time to stop maybe reviewing and formulating a plan and actually start delivering?
 
CHRIS BOWEN: Well, that's what we've been doing. I mean, we've been delivering since May in the federal government. We've been working with our state and territory colleagues since May and we have been delivering. I mean, Minister Kean has said at this press conference equivalent last time that that was the most productive energy ministers meeting in how long, eight years, something like that. We've been getting on with it, collectively, all of us and we've been doing that. And you’ve seen two weeks ago, the largest investment in energy by the Commonwealth government since Ben Chifley was Prime Minister. I mean, that's action. But we'll also continue to work together. And unlike the previous government, which knew about a 20% price rise and change the law so Angus Taylor didn't tell the Australian people. He signed a law change, which meant a DMO wasn't released until days after the federal election when it was meant to be released before. And he said this week, he didn't know about the price rises. What law was he changing when he didn't know about the price rises? Why did he change the law? Because he thought they might go down? I mean, give us a break.
 
Questions?
 
JOURNALIST: Was a profits tax at all discussed today?
 
CHRIS BOWEN: There are Commonwealth levers available. There are state levers available. From the Commonwealth’s point of view, we will look at the various levers available to us. And I've undertaken to consult with my state and territory colleagues, as we do so. But at this point, that is the process we have underway.
 
JOURNALIST: I know I'm repeating my earlier question, but when do you think consumers will be able to start actually seeing…
 
CHRIS BOWEN: Well, what we are doing is foreshadowing in the budget, pressures to come. So we've already seen some of that in the last default market offer, the one that Angus Taylor hid from the Australian people that is still flowing through. The next default market offer hasn't been set yet, but it will take some time to flow through. In the meantime, we're not waiting for it to flow through. We are contemplating the actions we need to take today because we do recognise that even then, they will take some time to take impact. Okay.
 
JOURNALIST: What do you say to people like Kevin Gallagher at Santos saying, if you impose a price cap on gas that'll be a disincentive to create a new supply…
 
CHRIS BOWEN: He's entitled to put his views to governments, all views will be considered. But nor will we be taking options off the table and nor will we be wondering later whether we've done enough.
 
JOURNALIST:  Will thermal coal will be part of any price cap or export control?
 
CHRIS BOWEN: Well, if you want me to start ruling things in or out, that's going to be a pretty dry telly.
 
JOURNALIST: The infrastructure costs of upgrading the electricity grid will obviously flow through to consumers as well. Will the state and federal governments press ahead with their ambitious plans to upgrade the grid for clean energy, even if it becomes apparent that infrastructure costs will…
 
CHRIS BOWEN: I don't accept the premise of that question, with respect. I don't accept that somehow Rewiring the Nation, building transmission is a cost of flow through to consumers. On the contrary, it's absolutely essential to get the cheapest form of energy in. And today, I don't mind telling you, ministers agreed to give the Australian Energy Regulator the power to make the rule change necessary to ensure that those cost reductions from the Commonwealth's balance sheet and concessional finance flows directly through to consumers.
 
JOURNALIST: Victoria has a moratorium on onshore gas convention for about three years. That was recently listed, how much of an impact did that moratorium have?
 
CHRIS BOWEN: The best person to answer that is the Victorian Minister.
 
LILY D’AMBROSIO: Thank you Chris. We're very unequivocal on our policy position when it comes to fracking and we've been very clear about that. Communities on side, farmers are on side and we've actually put in the constitution that we will not allow fracking in Victoria. But let's be really clear here about what is causing, what is driving the obscene price increases that we're seeing in the market that is affecting every household, every business, every manufacturer, it's not a supply issue. It's an absolute profiteering issue. That is what we've got here. Cost of production has not gone up. What we're seeing is people being held effectively to ransom in terms of their bills. Okay, cost of production has not gone up. The prices of wholesale prices have gone up that in fact doubled. And that's been passed on to consumers, every consumer. If you're going to fix this you have to get to the root of the problem, not the symptom, you go to the root of the problem. And that's why we've been really clear, we've been unequivocal in understanding the root cause of this problem around the energy ministers table today. Anything else is irrelevant, and doesn't go to the heart of that problem. We're very proud in terms of our record, in terms of protecting our environment, our farming communities, productive farming, all of those issues. We're absolutely proud of that. In the meantime, we are ensuring that we continue to grow new suppliers of power into Victoria, because we know when we do that, we actually see prices go down and down. What we've got right now is a symptom of a global problem where gas producers are profiteering. They're making significant obscene profits, and the ones who are paying are consumers. We've got to go to the root cause of this problem. And that's what we've all agreed to do today.
 
CHRIS BOWEN: We're losing state ministers to catch flights. You're about to lose me, but I'll take one more. You haven't had a question.
 
JOURNALIST: What do you make of Victoria’s plans to revive the electricity commission. Do you think it's wise?
 
CHRIS BOWEN: I absolutely support the Andrews’s Government's plans just as I support the Palaszczuk’s Government's plans announced recently. They are forward leaning. They are leadership. They are very welcome. And let me say this about public sector versus private sector investment. This is the biggest economic transformation at least since World War Two. There'll be plenty of room for private sector investment, public sector investment. We need all the above, we need foreign investment, we need domestic investment, we need public sector and private sector if we are going to get to 82% renewables by 2030 and reduce emissions by 43%. It is a massive investment task and economic opportunity we need to be all in and I'm delighted that the Andrew’s Government is absolutely all in.
 
Thanks guys that's a wrap.