Wednesday, 26 August 2026

 David DAVIS (Southern Metropolitan) (12:16): (1440) My question is again to the minister for energy. I refer the minister to the government’s offshore wind auction announced yesterday and the minister’s media release initially put out under Lily D’Ambrosio’s name – later corrected – regarding the role of the electricity services entry mechanism, the ESEM. I ask: will the minister confirm that the ESEM is a subsidy paid by domestic and industrial electricity account holders?

 Jaclyn SYMES (Northern Victoria – Minister for Energy and Resources, Minister for Environment, Minister for Climate Action, Minister for the State Electricity Commission) (12:17): At the outset, just to pick up on the comments that you made, Mr Davis, the official announcement of the auction was made by me today. It is building on the work of many, many years of former minister D’Ambrosio, and she should be really proud of that work. Being able to step in at this critical moment of something that is going to be so transformational is an honour for me, building on her good work.

In relation to the ESEM, it is currently envisaged that the offshore wind project will form part of that mechanism. That mechanism is currently in development with the federal government and the NEM states, and I expect that will be a topic of conversation at my upcoming energy ministerial council. The way these types of mechanisms work, an ESEM model would be a first national model, but this is not a unique model in relation to attracting investment, ensuring the investment is bankable and attracting those projects.

David Davis interjected.

Jaclyn SYMES: They are no different, Mr Davis, than the proposal that you have in relation to cancelling VNI and charging consumers to pay for gas. They are no different, except that our proposal would be much cheaper, more reliable and easier to deliver.

 David DAVIS (Southern Metropolitan) (12:19): I think that means that it is a subsidy; that is what it is. Will the minister confirm that the ESEM is not yet established and will depend on the agreement of all the NEM jurisdictional ministers?

 Jaclyn SYMES (Northern Victoria – Minister for Energy and Resources, Minister for Environment, Minister for Climate Action, Minister for the State Electricity Commission) (12:19): I answered your question, Mr Davis. There will be ongoing work with the Commonwealth and other NEM jurisdictions to finalise the design. Subject to further work on detailed design and implementation, the scheme is expected to be in place by the end of 2027. As I already indicated to you in my answer to your substantive question, these are discussions that I expect to pick up at the next energy min co.