LEIGH SALES: The Prime Minister's putting energy companies on notice, that he expects electricity bills to come down before the next federal election, but alongside that is the challenge of keeping power supplies reliable, particularly as we head into summer. Angus Taylor's the Energy Minister. He joined me from Canberra. Angus Taylor, thanks for being with us.

ANGUS TAYLOR: Thanks for having me, Leigh.

LEIGH SALES: Scott Morrison today used the term ‘fair-dinkum power generation’ - what does that mean?

ANGUS TAYLOR: Well, we need to make sure we've got the right balance of power generation in our electricity market. That means there's enough dispatchable power, power that arrives when you need it, and that balance is really critical. Now, we have 250 per cent increase in solar and wind coming into the system in the next three years. Solar and wind will go from 9 per cent to 23.5 per cent of generation. So, it is critical we also are able to firm this and to have the reliable power that keeps the lights on and keeps prices down.

LEIGH SALES: So, is fair dinkum power code for coal-fired power?

ANGUS TAYLOR: No, there's no code - it's dispatchable power. It's power when customers demand it, and we've got to get that balance right. This is really critical. There's been challenges in South Australia as they've gone down this track in keeping that balance right, and we're determined, across the National Electricity Market, to make sure we have got that right balance, and that's why we're backing investment in generation that will get that balance right.

LEIGH SALES: You mentioned South Australia. One of the initiatives the Government has highlighted today is to force energy companies to contract or buy ahead to ensure there's sufficient reliable power in the system. Can you guarantee that there'll be no blackouts this summer?

ANGUS TAYLOR: Well, his summer will be challenging, Leigh. AEMO has told us there's almost 400 megawatts short in Victoria, which needs to be made up to be sure that we're going to avoid any load-shedding, as they call it, which is blackouts –

LEIGH SALES: And will you be making that up?

ANGUS TAYLOR: And AEMO is working hard to find that almost 400 megawatts of generation now - or demand management, whichever it may be. So, this is a challenging situation. What we're doing with this reliability obligation, is we are making sure years ahead retailers have an obligation to make sure they've got enough reliable power, the right balance, within their portfolio, to meet their customers' needs, and that won't just ensure we keep the lights on, it will ensure that we keep prices down because there's enough supply in the market.

LEIGH SALES: The Prime Minister today is putting energy companies on notice to bring down prices. By how much and when?

ANGUS TAYLOR: We want to see appreciable reductions in standing offers, which are the offers you get if you haven’t got time to negotiate from 1 January with full implementation of the retail price safety net by 1 July –

LEIGH SALES: Sorry to cut you off, but I just want to ask it in a way that I think will get you to answer it in a way that would appeal to the average punter. I get my electricity bill, it is 500 bucks. How much is it going to down by and when?

ANGUS TAYLOR: So, every customer is different, Leigh, but what I can tell you is that we are determined to - and we will - reduce the electricity bill for Australia. It must come down.

LEIGH SALES: But by how much? I'm asking for the detail.

ANGUS TAYLOR: It will start from 1 January. Every customer will be different. There'll be appreciable differences. Look, to give you a sense of how big the loyalty tax is that customers are paying right now - in Victoria we've seen an increase in that loyalty tax in the last four years from $250 to $500. Now, that's just not on. For a customer to ring up and ask for alternatives, they can get that kind of saving, but not everyone has the time or ability to do that. So, what we're doing here is making sure that loyalty tax goes. It's hundreds of dollars in most situations. And –

LEIGH SALES: So, people should expect –

ANGUS TAYLOR: We're expecting the energy companies to deal with that and pass that through to customers.

LEIGH SALES: So hundreds of bucks off our yearly power bills?

ANGUS TAYLOR: Well, typically that's the case if you're being charged this loyalty tax. Now, there's another tax, which is what I call the confusion tax, which is if you ring around to different retailers and ask for discounts, they'll all discount versus a different benchmark, which is absolutely unacceptable. Again, many customers are paying too much because they aren't able to compare offers with each other. Now, there's hundreds of bucks up for grabs in getting that right, and then as we move to making sure we have the right generation in place, we'll see wholesale prices coming down over time as well. There are short-term components to this package are there as well as longer-term ones.

LEIGH SALES: This Government suggests that emissions reduction, carbon emissions reduction, and power prices are not linked. If that's true, then you're admitting that your entire anti-carbon tax platform was a hoax because your opposition to it was based on it driving up power prices.

ANGUS TAYLOR: Well, no, Leigh, I said before, we're going to see a 250 per cent increase in renewables in the next three years from 9 per cent of the electricity market to 23.5 per cent in three short years –

LEIGH SALES: But can you address my point there, about emissions reduction?

ANGUS TAYLOR: Now, what that mean- this is important - I'm answering the question – what that means is that will be down very close to or at the 2030 Paris Target in the early 2020s. So, we are in a very good position on emissions in the electricity market, and these are ESB's numbers. They're not by numbers, they're the ESB's numbers.

LEIGH SALES: But what I'm trying to get to is that the Government says emissions reduction and power prices are separate issues but you spent a whole lot of time campaigning against the carbon tax, on the premise that it was raising power prices.

ANGUS TAYLOR: And my point is that because we are seeing such a rapid reduction of emissions in the electricity market in the next couple of years from committed projects - these aren't projects on paper, these are committed projects - we now can focus on the other issue that Australians are deeply concerned about, which is power prices and keeping the lights on, particularly in markets like South Australia and Victoria, where there's been real threats to reliability.

LEIGH SALES: Will the Government be topping up the Emissions Reduction Fund which is about to run out of money?

ANGUS TAYLOR: Well, the Prime Minister just said today he won't rule that out. What I'm talking about here though, is my focus - I have a very clear focus which has been given to me by the Prime Minister - which is getting the electricity market right. I know because we are doing so well on emissions in the electricity market, and we've done very well for a lot of years, it's part of the reason why we reached Kyoto One, we'll reach Kyoto Two, almost 300 million tonnes per annum over-delivery in abatement of carbon dioxide equivalent, because of that we're in a great position in the electricity market and we can focus on getting prices down and ensuring we have reliability.

LEIGH SALES: Let me ask you, as a senior member of the Government, what has the Coalition achieved by getting rid of Malcolm Turnbull? What has improved?

ANGUS TAYLOR: Look, at the end of the day one of the things I wanted to focus on and I'm focusing on now is getting electricity prices down. And –

LEIGH SALES: Can you please answer the question? It was a big thing to get rid of a sitting prime minister. What has improved for the Coalition by doing that?

ANGUS TAYLOR: Well, we have this focus. I have this focus –

LEIGH SALES: So did Malcolm Turnbull.

ANGUS TAYLOR: It's something that I wanted to focus on or wanted the Government to focus on - I didn't know whether I was ever going to get the job but I was privileged enough to be given the job by Scott Morrison –

LEIGH SALES: Malcolm Turnbull was focusing on getting power prices down.

ANGUS TAYLOR: And I am absolutely focused on this. That is a sharp focus that every Australian small business, every Australian household that's concerned about electricity bills wants the Government to focus on. Look, there've been big rip offs by the energy companies and we're not going to put up with them.

LEIGH SALES: Should the viewers of this show read anything into the fact that you just ducked that question, you couldn't tell me what's improved?

ANGUS TAYLOR: Well, I didn't. I said quite clearly, Leigh, that my focus is on getting electricity prices down, and I believed we needed a minister who was focused on that. Now we have one, and I happen to be that person. That is a good thing, and what I'm confident of is we can do that, whilst meeting those emissions obligations, but we need that sharp focus and that's extremely important for so many Australian businesses, both large and small, that where jobs depend on our ability to get energy prices down.

LEIGH SALES: Well, we'll look forward to having you on again in that capacity. Angus Taylor, thank you very much.

ANGUS TAYLOR: Thanks, Leigh.