MS THEOPHANOUS (Northcote): I rise with pleasure to speak in support of the National Energy Legislation Amendment Bill 2020 because it relates to an issue that now more than ever is critical to our communities, and that is making ends meet.
When Labor came to government in 2014 the energy market was in desperate need of reform. Victorians were dealing with hiked-up energy prices in a convoluted system that was stacked against them. Even after 15 years of so-called competition as a result of the strident privatisation efforts of those opposite, the promise of lower bills remained unfulfilled.
That is why from day one the Andrews government has had a clear objective to bring fairness back to the energy market and build an energy sector for the future. As the member for Sunbury noted, this is not a simple or swift process. It is why we commissioned an independent review of the energy market, and that review concluded intervention is required to ensure better outcomes for customers, as did the recent ACCC review, which similarly found that the privatised energy market is spectacularly failing energy users.
That is why this is our 14th piece of legislation delivering improvements to this sector since coming to government. Why? It is because we know that energy costs remain a significant financial pressure for countless Victorian businesses and households. In my own community, individuals, families and businesses are doing it tough, tougher perhaps than they ever have before. For many, receiving that power bill is more than just a routine task; it is a stressful burden. It means having to decide what to forgo that month to pay it. This bill introduces reforms to help alleviate some of that pressure.
Currently in Victoria electricity and gas price increases come in on 1 January, yet the Christmas and New Year period is a time when our household budgets are already under stress or indeed sometimes at breaking point. What is more, this can also be the busiest time of year for families, and in the case of our retail, hospitality and frontline workers, it is the time of year when they are working harder than ever. This means under the current arrangements household bill increases are arriving at a time when we can least afford them and when we are least able to take the time to make sure we are getting the best deal. This bill means price changes instead happen on 1 July, by moving the regulatory period to the financial year. Not only does this bring Victoria in line with other jurisdictions across Australia but it ensures Victorians are getting price changes when they are more likely to have the time to explore their options and engage with the market.
But this bill is not a one-off. It builds on our extensive work as part of the government’s energy fairness plan. A centrepiece of this plan was delivered last year when we introduced the Victorian default offer, or VDO. The VDO means Victorians get a simple-to-understand, reliable and fair price for electricity rather than the costly and confusing standing offers of the past. Already it is delivering cost savings to households and businesses across our suburbs. Households can save up to $450 and some businesses over $2000 on their annual bills.
I know from speaking with residents and businesses across Northcote that these savings have made a real difference. For some it has literally meant being able to keep the lights on. At the same time our Victorian Energy Compare website has been helping millions of Victorians access free advice on getting the best energy deal, and we are on track to deliver the remaining recommendations of the Independent Review into the Electricity and Gas Retail Markets in Victoria—things like banning door-to-door sales and cold-calling by energy retailers and increasing penalties for retailers who give false or misleading information or who wrongfully disconnect customers.
But what I am most pleased about is the recent announcement that from the start of September this year the Victorian default offer will be set as the maximum price at which embedded network customers can be charged for energy. Let me put that a little bit plainer. These are networks like those in apartment buildings, rooming houses, caravan parks and retirement villages, as well as for small businesses operating out of shopping centres. Before September they did not have access to the default offer. Now the default offer is the maximum that they can be charged. In the Northcote electorate over 20 per cent of our residents live in a flat or apartment compared to 11 per cent across Victoria, and that is on the last census; it is likely a fair bit higher now. For those living and working with these embedded networks, being locked into a contract with a specific energy provider can be really difficult and costly. These providers, once locked in, can act as a kind of monopoly and increase prices, forcing residents to make difficult decisions about whether they can even afford to stay in their homes.
As we all know, right now every little bit counts. That is why throughout this pandemic we have made it a priority to take the financial burden off families and businesses while we collectively do what is needed to slow the virus. We have done this through more than $13 billion in initiatives to support businesses, workers and families—things like payroll tax refunds, land tax discounts, rental subsidies and grant payments. We take this approach because we do not agree with the strategy of piling more pressure on families. We do not agree with chasing budget surpluses or putting politics ahead of people. I say this because while our government implements legislation like this to ease the pressure on families, I am seeing those same families within the Northcote electorate hit with increased rates and charges from council. I have been on the ground working every day with locals under immense stress. When so many in our community are dealing with family members having lost large proportions of their income, the idea of council ratcheting up rates and charges on its residents is frankly deplorable. Some households are facing increases of more than 20 per cent on their rates when valuations are taken into account, and pet registration has gone up by 25 per cent.
Just as this bill eases the burden on residents, I have seen some excellent initiatives coming out of other local governments. The City of Melbourne, for instance, has frozen rates and dipped into cash reserves to drive investment. Disappointingly for my Darebin and Yarra residents, rates are set to rise, and in the case of Darebin they are actually projecting a surplus budget with a cut to infrastructure spend. This at a time when many are struggling to make ends meet. There is always a justification that can be conjured for these increases—‘It’s just a little increase. It won’t have much impact. Home owners are already well off’. I have actually heard those words spoken from some councillors in Darebin. But as we all know, if you take enough little scoops you end up with nothing.
Every little bit counts to get families through this pandemic. That is why in addition to the critical reform provided in this bill we have created some of the strongest energy hardship protections in the country. These include $3.7 million to connect Victorians with energy bill hardship support, a new energy brokerage program and making sure that no household engaging with their energy company can be disconnected from gas or electricity.
From the moment we came to government we have taken action to reduce the cost of energy for households and businesses across Victoria. But not only that, we have also led the nation in reforming our energy sector for the future with our investments into renewables and our work to achieve net zero emissions by 2050. Our Solar Homes program is putting solar on 770 000 homes across Victoria. We are putting solar on schools and upgrading sports clubs, community halls, public housing and childcare centres across the state to make them more energy efficient, and we have just announced that we will be tendering to build enough renewables to power all our trains, schools, hospitals and government services.
As we continue the enormous task of protecting Victorian lives and livelihoods, I know we will keep building on our track record of aligning economic, social and environmental outcomes to put Victoria in the best position possible to rebuild and recover. We can and will get through this. To everyone in my community, thank you for your courage and your resilience. Time and again I have been in awe of how you have pulled together in unity and determination to support each other and to keep each other safe. Whether you are a parent juggling work from home with your remote schooling for your kids, whether you are a business under pressure trying to pivot, whether you are on the front lines of our healthcare system or indeed whether you are a worker that has lost shifts and is struggling with income— (Time expired)
Business interrupted under resolution of house of 3 September.
