1 00:00:00,440 --> 00:00:03,920 Speaker 1: More tweaks for our electricity sector. As you've struggled to 2 00:00:04,080 --> 00:00:06,920 Speaker 1: warm your home up this morning, juice is freezing out there. 3 00:00:07,440 --> 00:00:10,960 Speaker 1: Big four gentailors have to sellp pout everyone at the 4 00:00:11,039 --> 00:00:15,200 Speaker 1: same price, not just themselves. Energy Minister Simon Watts reckons 5 00:00:15,240 --> 00:00:18,200 Speaker 1: it'll level the playing field and bring prices down. Eventually 6 00:00:18,239 --> 00:00:21,880 Speaker 1: we'll see. Margaret Keoney is Octopus Energy chief operating officer 7 00:00:21,920 --> 00:00:25,360 Speaker 1: with us this morning, Margaret, good morning, good morning. Will 8 00:00:25,360 --> 00:00:27,480 Speaker 1: this lower prices? 9 00:00:27,880 --> 00:00:31,400 Speaker 2: Look? I think the idea behind this, which is that 10 00:00:31,480 --> 00:00:37,120 Speaker 2: the big four gentailors need to deal with competing terms 11 00:00:37,200 --> 00:00:40,599 Speaker 2: on a level playing field, is really important that what 12 00:00:40,640 --> 00:00:46,000 Speaker 2: we're concerned about is how it's executed. So the idea 13 00:00:46,120 --> 00:00:49,159 Speaker 2: at the moment is to put this in as principles. 14 00:00:50,800 --> 00:00:52,880 Speaker 2: I know from dealing with my four year old that 15 00:00:53,000 --> 00:00:55,960 Speaker 2: I final leave a bag of lollies in front of him, 16 00:00:56,160 --> 00:00:58,960 Speaker 2: you'll eventually go and grab the lollies. So I think 17 00:00:59,280 --> 00:01:03,240 Speaker 2: we need more than just principles. We need some robust 18 00:01:03,320 --> 00:01:09,199 Speaker 2: rules to ensure that discrimination doesn't keep happening, because ultimately 19 00:01:09,480 --> 00:01:16,240 Speaker 2: that really damages competition, which leads to a lack of 20 00:01:16,440 --> 00:01:20,640 Speaker 2: responsiveness in the market, which leads to a lack of investment, 21 00:01:21,120 --> 00:01:24,679 Speaker 2: which ultimately impacts the prices for end consumers. 22 00:01:24,760 --> 00:01:26,440 Speaker 1: Do they need to grow some balls, Margaret? 23 00:01:29,120 --> 00:01:32,520 Speaker 2: There's one way of putting it. But I think there 24 00:01:32,520 --> 00:01:36,040 Speaker 2: are some solutions that they can pick up quite easily 25 00:01:36,720 --> 00:01:44,240 Speaker 2: and implement. But it requires some decisiveness and it also helpful. 26 00:01:44,720 --> 00:01:46,600 Speaker 1: Because the thing is, I mean you look at the 27 00:01:46,720 --> 00:01:50,120 Speaker 1: super peak hedge contracts that they've talked about. Yesterday in 28 00:01:50,160 --> 00:01:52,200 Speaker 1: August they came out and they said, let's do this 29 00:01:52,280 --> 00:01:56,680 Speaker 1: voluntary thing. Didn't work. Now that gent tailors must offer 30 00:01:56,960 --> 00:02:00,520 Speaker 1: minimum quantities. But then if that doesn't work, then they 31 00:02:00,640 --> 00:02:02,960 Speaker 1: might face regulation. I mean, it all sounds a bit 32 00:02:03,000 --> 00:02:05,280 Speaker 1: spiders ways, doesn't it. Well. 33 00:02:05,320 --> 00:02:07,120 Speaker 2: I think this is the thing. We've had lots of 34 00:02:07,400 --> 00:02:11,919 Speaker 2: small iterative steps and I think it would be good 35 00:02:12,200 --> 00:02:15,520 Speaker 2: to get to the nub of some of these issues, 36 00:02:15,880 --> 00:02:21,640 Speaker 2: and something which addresses the structural elements would be helpful. 37 00:02:22,280 --> 00:02:25,840 Speaker 2: And so I think with the frontier of you going on, 38 00:02:26,000 --> 00:02:29,720 Speaker 2: there's this opportunity for government to use that to make 39 00:02:29,720 --> 00:02:33,120 Speaker 2: sure that the settings work really well rather than doing 40 00:02:33,160 --> 00:02:35,960 Speaker 2: lots of little tinkers are here and there. 41 00:02:36,080 --> 00:02:38,520 Speaker 1: What's the big nuclear option? Is it splitting up the 42 00:02:38,720 --> 00:02:40,280 Speaker 1: gen Taylor's. 43 00:02:40,520 --> 00:02:44,080 Speaker 2: So I think one of there won't be a single 44 00:02:44,280 --> 00:02:46,760 Speaker 2: silver bullet to this, but one of the things that 45 00:02:46,800 --> 00:02:53,480 Speaker 2: we've suggested is basically requiring these large players to operate 46 00:02:53,600 --> 00:02:58,320 Speaker 2: their retail and generation businesses at arms link because part 47 00:02:58,360 --> 00:03:00,320 Speaker 2: of the problem at the moment has been a real 48 00:03:00,400 --> 00:03:05,120 Speaker 2: lack of transparency around the trading behavior, and so that 49 00:03:05,160 --> 00:03:10,320 Speaker 2: would help resolve that, and then if those businesses are 50 00:03:10,360 --> 00:03:13,680 Speaker 2: behaving in the market, it will help stimulate all of 51 00:03:13,720 --> 00:03:20,040 Speaker 2: that investment that's sitting in the pipeline with independent generators 52 00:03:20,040 --> 00:03:24,480 Speaker 2: and things. Additionally, we think we're in such an acute 53 00:03:24,680 --> 00:03:29,040 Speaker 2: energy shortage that actually the government should look at doing 54 00:03:29,120 --> 00:03:33,720 Speaker 2: something immediately like a tender for new generation to come 55 00:03:33,760 --> 00:03:37,440 Speaker 2: into market more quickly. We think there needs to be 56 00:03:37,880 --> 00:03:47,560 Speaker 2: this comprehensive set of actions, and the access conditions for 57 00:03:47,680 --> 00:03:49,720 Speaker 2: the market is one ingredient. 58 00:03:49,320 --> 00:03:51,760 Speaker 1: For it, rather than more tinkering around the edges. Margaret, 59 00:03:51,760 --> 00:03:54,720 Speaker 1: appreciate your time this morning. Margaret Kearney, Octopus Energy, Chief 60 00:03:54,760 --> 00:03:58,720 Speaker 1: Operating Office. For more from Early edition with Ryan Bridge, 61 00:03:58,840 --> 00:04:01,680 Speaker 1: Listen live to new Talks it'd be from five am 62 00:04:01,720 --> 00:04:02,240 Speaker 1: weekdays 63 00:04:02,520 --> 00:04:04,600 Speaker 2: Or follow the podcast on iHeartRadio.