The closure of Hazelwood power station has again exposed Energy Minister Tom Koutsantonis’ complete lack of understanding regarding South Australia’s electricity system.

On 26 September 2016, Minister Koutsantonis said: “…If they close Hazelwood, It’s going to be good for SA”  (Adelaide Advertiser, 26 September 2016):

“In fact the closure of Hazelwood will see another surge in electricity prices in South Australia as the price for the electricity we import from Victoria rises,” said Shadow Minister for Mineral Resources and Energy Dan van Holst Pellekaan.

“Tom Koutsantonis would be one of very few people in South Australia welcoming a yet another increase in the price of power for households and businesses.”

Minister Koutsantonis also claimed in the same interview:

“If Engie closes Hazelwood, market forces will compel them to turn Pelican Point on all the time.”

However yesterday Engie Australia’s chief executive, Alex Keisser said “the company could increase production at the Pelican Point gas-fired power station — but only if gas and energy supply contracts were secured. (AdelaideNow, 03 November 2016)

“Minister Koutsantonis’ statement demonstrates a very poor understanding of market forces as they operate within the National Electricity Market,” said Dan van Holst Pellekaan.

“South Australians have the most expensive and least reliable electricity in Australia as a consequence of Weatherill Government’s woeful energy policies.

“With Minister Koutsantonis in charge of energy policy there is little hope of any improvement any time soon.”