LEON BYNER: Now, the Federal Energy Minister – we’ll speak to him in a moment – he says that Australia has beaten its 2020 emissions reductions target and has pledged to beat its 2030 Paris target as well. Well, that's all nice, but the people I talk to, few of them will mention any of this. Most of them talk about price, the price of electricity. But let's talk to the Federal Energy Minister, Angus Taylor. Angus, good morning.

ANGUS TAYLOR: Good morning, Leon. Thanks for having me.

LEON BYNER: You see that conundrum, don’t you? That whilst there are those who will concern themselves with emissions, the vast majority of people say: ‘I'm worried about the price.’

ANGUS TAYLOR: I agree - absolutely - and that's why we are focused on using technology, not taxation and higher energy prices to bring down emissions. It's why we are so focused on making sure we have enough dispatchable capacity in our system, and of course, that's been a major challenge in South Australia as well as other states. It means having a balance in our energy system. That means gas is an important part of it, alongside hydro. Coal has an ongoing role to play particularly in the eastern states. Look, this balance is absolutely crucial to make sure that we get our emissions down as we keep the lights on and keep prices down, Leon. We don't see any compromise as acceptable.

LEON BYNER: Alright. Let me give you a couple of questions that listeners have already emailed me. I'm talking with Energy Minister Angus Taylor. Jenny says: ‘South Australia has got more renewable energy than most other states. In fact, there are many times when we are running on it for extended hours during the day. Why then are our prices much higher?’

ANGUS TAYLOR: South Australia set a very aggressive renewables target and forced out the Northern Power Station a number of years ago. It forced out dispatchable generation. We're now seeing wholesale prices in South Australia coming down very significantly, this had happened before COVID. That's good news. We need to see those lower wholesale prices pass through to customers. That's starting to happen.

LEON BYNER: Why don't they pass through?

ANGUS TAYLOR: Well, you've actually got to go and shop around to get the full benefits. We are seeing reductions. There's no question about that. But there has rarely been a better time than now to shop around. You can go onto the Energy Made Easy website. It's designed to make it really easy to upload your energy bill and get the best possible plan for you. But because of lower wholesale prices, we are now seeing much sharper retail pricing in the market. But you can't sit on your hands, you've got to get around and make sure you hold those big energy companies to account by going and getting the best possible plan for your particular needs.

LEON BYNER: See there's what they call now the reference price, which really is just the price that you pay if you don't have a contract, and that's generally higher than if you do. Can the difference be significant?

ANGUS TAYLOR: It can be but we have seen the reference price bring down the default price, which is the price you get if you haven't actually gone out and asked for a better one or shopped around. We have seen that reference price come down significantly because we capped it several years ago, and that has had a real impact on people who are on that default pricing. But the point I'm making is that you can get a better price if you get on the phone. Just ask your provider for a better price, it’s as simple as that. Or, even better, you're more likely to get an even better price if you shop around and use the Energy Made Easy website that we've talked about before on your program.

LEON BYNER: People like Danny Price and Bruce Mountain, who are both experts in the field of electricity prices, both of them say that there's a lack of competition for retail in SA. Is there anything that you can do to make that less of a problem?

ANGUS TAYLOR: There's a couple of things. Number one is we put in place this default price, this reference price, and that has obviously had an impact which is good news, but we want to go further. You know, the best regulator of any market, and the best means of bringing new competition into a market is through customers. That's why we really encourage people to shop around. If you shop around you, you'll get a better price, but even better, or as important, you actually help others to get a better price to it. You're doing a good deed for others as well as doing a good deed for yourself. So, that's how we get competition in any market, is customers demand it and we strongly encourage people to get out there and do it. Look, we've also got to get more dispatchable capacity into the South Australian market. I opened a gas generator down there about a year ago, you'll remember, Leon, and it was good to see that coming in. We see in the wholesale market that's had a real impact. It’s great news. Making sure we get that balance right is crucially important.

LEON BYNER: Angus Taylor, thank you for joining us.

Media contact:

Minister Taylor's office: 02 6277 7120