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Energy and Emissions Reduction - Transmission Cost Allocation

Dr Rosalie Woodruff MP

Dr Rosalie Woodruff MP  -  Thursday, 9 September 2021

Tags: State Budget

Dr WOODRUFF - Okay, that is great to hear. Thanks. There could be a market advantage for other people to piggyback on and call themselves green when they have 10 per cent of something.

In relation to Marinus, last year the Energy Security Board provided advice to energy ministers on transmission cost allocation. We haven't seen an announcement yet about that issue. As you would know, a cost allocation decision is needed before a final decision is made in 2023-24. Was this issue discussed at the National Energy Ministers' meeting last month? What do you expect a decision will look like?

Mr BARNETT - Thank you for the question. It is appreciated because fair cost allocation is an important matter. Tasmanians don't want to be paying more than their fair share. As a government, we don't want Tasmanians to be paying any extra in addition to what is fair and reasonable. That was discussed at the last month's meeting with the energy ministers, which was held online, as you can understand. There will be a meeting late this month and then a further meeting in February next year.

I meet regularly with Angus Taylor, the federal Minister for Energy and Emissions Reduction, and engage with him. It is an important matter for Tasmania and the Australian Government because, working together, we want to achieve a fair cost allocation method for Project Marinus. Last week, Mr Taylor introduced into the federal parliament the Offshore Electricity Infrastructure Bill 2021 to support the development of offshore energy infrastructure, including Marinus Link. The minister said:

Importantly, this Bill will accelerate a number of projects already under development like the Marinus Link transmission line, which will connect the mainland to Tasmania's Battery of the Nation project.

Further, to recap from the Prime Minister and his strong support and his strong support for Battery of the Nation and Marinus Link, he said at the signing of the memorandum of understanding that we have with the federal government on 15 December 2020:

These two projects will maintain downward pressure on electricity prices so households can keep more of what they earn. They will also develop the backbone of a reliable, low emissions National Electricity Market for the next decade and beyond. These projects will create 2800 jobs which will be crucial as Tasmania continues to recover from the COVID-19 pandemic.

Likewise, Mr Taylor said similar things in support. I made reference just a short time ago to the independent report released some months ago now which advised that Marinus Link, independently assessed, would deliver a downward pressure on electricity prices across the National Electricity Market. That augurs well for Marinus Link going forward but it remains an important issue. We will remain focused on our objectives to ensure fair cost allocation.