1 00:00:00,120 --> 00:00:02,200 Speaker 1: This power reform. Where do we land yesterday? Where we 2 00:00:02,240 --> 00:00:04,440 Speaker 1: seemed reaction wise to get everything from it was a 3 00:00:04,440 --> 00:00:07,360 Speaker 1: missed opportunity through to it being bold the go ahead 4 00:00:07,400 --> 00:00:09,560 Speaker 1: for three big gent tailors to raise capital for projects. 5 00:00:09,560 --> 00:00:12,400 Speaker 1: We got some LPG importation, eventually some more powers for 6 00:00:12,440 --> 00:00:15,960 Speaker 1: the electricity authority. Ste Hamilton is the Mercury Energy Boss 7 00:00:16,000 --> 00:00:19,200 Speaker 1: and is with us, Sue Morning, good Mike. Out of 8 00:00:19,280 --> 00:00:21,920 Speaker 1: ten ten they couldn't have done more one they barely 9 00:00:22,079 --> 00:00:23,360 Speaker 1: touched the sides. What do you give it? 10 00:00:24,880 --> 00:00:27,840 Speaker 2: I think generally the intent is good, like it's covering 11 00:00:27,840 --> 00:00:31,720 Speaker 2: the key things around security of supply and creme transparency 12 00:00:31,760 --> 00:00:35,320 Speaker 2: in the market. It was a pretty extensive investigation that 13 00:00:35,400 --> 00:00:38,839 Speaker 2: took place, and it considered a massively wide range of factors. 14 00:00:39,200 --> 00:00:41,600 Speaker 2: But ultimately it comes back to saying, look, the market 15 00:00:41,720 --> 00:00:45,360 Speaker 2: is working pretty well at building projects. It really needs 16 00:00:45,400 --> 00:00:47,640 Speaker 2: to focus more on delivering firming okay. 17 00:00:48,159 --> 00:00:52,240 Speaker 1: Clarity is what the business community seemed to suggest came 18 00:00:52,280 --> 00:00:54,200 Speaker 1: out of that is that some of the subtlety in 19 00:00:54,200 --> 00:00:56,720 Speaker 1: the announcement yesterday that the wider public or the media 20 00:00:56,800 --> 00:00:58,760 Speaker 1: might have missed. In other words, what you wanted from 21 00:00:58,800 --> 00:01:02,040 Speaker 1: the government was some roadscape and that's what you got. 22 00:01:03,240 --> 00:01:05,520 Speaker 2: Yes, I think that's right. Actually, I think we've got 23 00:01:05,560 --> 00:01:08,800 Speaker 2: some form of clarity it now lets us continue to 24 00:01:08,880 --> 00:01:12,160 Speaker 2: keep building at pace and actually we're now building at 25 00:01:12,240 --> 00:01:15,160 Speaker 2: twenty five percent faster than during the Think Big period, 26 00:01:15,480 --> 00:01:18,560 Speaker 2: so that puts things into context, and actually delivering in 27 00:01:18,680 --> 00:01:21,440 Speaker 2: the last eighteen months more power projects than we did 28 00:01:21,520 --> 00:01:25,000 Speaker 2: in the previous fifteen years. So we're on the right track. 29 00:01:25,040 --> 00:01:26,920 Speaker 2: Now we've got some clarity just to keep going and 30 00:01:26,959 --> 00:01:28,120 Speaker 2: investing in those right things. 31 00:01:28,200 --> 00:01:31,280 Speaker 1: Which makes it interesting because their key or their signature 32 00:01:31,319 --> 00:01:34,480 Speaker 1: piece yesterday was apparently you guys of which you are one, 33 00:01:35,040 --> 00:01:39,280 Speaker 1: are not doing enough because you thought that they weren't 34 00:01:39,319 --> 00:01:41,679 Speaker 1: interested in it. Is any of that true? 35 00:01:43,080 --> 00:01:46,240 Speaker 2: We're actually at the moment we're investing one billion dollars 36 00:01:46,280 --> 00:01:50,000 Speaker 2: into projects, so certainly it's not something that we initiated 37 00:01:50,240 --> 00:01:53,280 Speaker 2: were the focus on continue to invest, But we've got 38 00:01:53,280 --> 00:01:56,120 Speaker 2: a strong balance sheet. As I mentioned, we're spending about 39 00:01:56,120 --> 00:01:58,440 Speaker 2: a billion dollars at the moment on three power projects. 40 00:01:58,440 --> 00:02:01,000 Speaker 2: We've got a really strong fily away ahead of us, 41 00:02:01,080 --> 00:02:03,640 Speaker 2: and so for us, we don't really see that as 42 00:02:03,680 --> 00:02:07,040 Speaker 2: been a key blocker at the moment. We certainly welcome 43 00:02:07,080 --> 00:02:10,440 Speaker 2: the sort of signal to keep investing, but we'll keep going. 44 00:02:10,480 --> 00:02:12,200 Speaker 1: Do you actually need the government? I mean, can you? 45 00:02:12,280 --> 00:02:14,400 Speaker 1: Can you go out to the marketplace and do your 46 00:02:14,440 --> 00:02:17,000 Speaker 1: own thing? And can the other gent tailors as owned 47 00:02:17,000 --> 00:02:19,000 Speaker 1: by the government on the sheer market can can they 48 00:02:19,040 --> 00:02:21,280 Speaker 1: do their own thing? And are they doing their own thing? 49 00:02:22,880 --> 00:02:24,519 Speaker 2: There's two ways you can get money. You can go 50 00:02:24,600 --> 00:02:27,720 Speaker 2: out to raise equity, as a government talked about yesterday. 51 00:02:28,080 --> 00:02:29,280 Speaker 2: The other way we can get money is to go 52 00:02:29,360 --> 00:02:31,519 Speaker 2: out and raise debt. So go out and get get 53 00:02:31,600 --> 00:02:34,560 Speaker 2: basically bond holders to give us, give us money. And 54 00:02:34,560 --> 00:02:37,079 Speaker 2: so at the moment we've got we've got head room 55 00:02:37,200 --> 00:02:38,840 Speaker 2: to keep investing, so we don't see that as a 56 00:02:38,840 --> 00:02:40,320 Speaker 2: current block hat for us to keep going. 57 00:02:40,360 --> 00:02:41,560 Speaker 1: Yeah. I don't want to get you in trouble with 58 00:02:41,600 --> 00:02:43,639 Speaker 1: the government. I just can't. What you're telling me is 59 00:02:43,680 --> 00:02:45,679 Speaker 1: what I thought, and that is you're doing your own thing. 60 00:02:46,120 --> 00:02:48,160 Speaker 1: And what they're trying to explain to the public is 61 00:02:48,240 --> 00:02:50,680 Speaker 1: that there was some sort of massive blockage that by 62 00:02:50,720 --> 00:02:54,840 Speaker 1: making yesterday's announcement they let you loose. And that doesn't 63 00:02:54,840 --> 00:02:56,400 Speaker 1: appear to me to be remotely true. 64 00:02:57,480 --> 00:03:00,800 Speaker 2: Yeah, I think in terms of building renewables, absolutely getting 65 00:03:00,800 --> 00:03:03,320 Speaker 2: on at pace. So the issue probably that really came 66 00:03:03,360 --> 00:03:05,360 Speaker 2: out of the report yesterday and the government talked to 67 00:03:05,639 --> 00:03:08,560 Speaker 2: was how do we go about building therm or firming 68 00:03:08,639 --> 00:03:10,760 Speaker 2: or how do we provide firming? And at the moment 69 00:03:10,880 --> 00:03:13,560 Speaker 2: that gent Taylor's and along with the Big Four have 70 00:03:13,680 --> 00:03:16,480 Speaker 2: basically worked with hunt Meat to put in place of 71 00:03:16,680 --> 00:03:19,000 Speaker 2: firming option to help with that firming. So there are 72 00:03:19,040 --> 00:03:22,200 Speaker 2: a number of options which actually progressing quite well. It's 73 00:03:22,200 --> 00:03:23,880 Speaker 2: just trying to work out what else they could be 74 00:03:23,960 --> 00:03:26,760 Speaker 2: to fill that gap so when the rain's not falling, 75 00:03:26,760 --> 00:03:27,840 Speaker 2: we can cover that drive period. 76 00:03:28,440 --> 00:03:30,079 Speaker 1: I get that, but I'm a simple man, so let's 77 00:03:30,120 --> 00:03:32,239 Speaker 1: keep it simple for everybody. So what we got is 78 00:03:32,280 --> 00:03:34,040 Speaker 1: that the oil and gas thing that we all know of. 79 00:03:34,120 --> 00:03:35,960 Speaker 1: We shouldn't have done it. But here is where we are. 80 00:03:36,200 --> 00:03:38,200 Speaker 1: We've got a gap before the windmills and all the 81 00:03:38,200 --> 00:03:40,720 Speaker 1: other stuff comes online, and I understand there's plenty coming 82 00:03:40,760 --> 00:03:42,520 Speaker 1: online over a period of time. So the gap has 83 00:03:42,560 --> 00:03:44,640 Speaker 1: been filled forget the climate for a moment by the coal. 84 00:03:44,720 --> 00:03:48,600 Speaker 1: We've got the coal deal. We're kind of sorted, don't we. 85 00:03:49,960 --> 00:03:51,840 Speaker 2: Yeah. I think we're hitting in the right direction absolutely. 86 00:03:51,880 --> 00:03:55,360 Speaker 2: I mean, you see wholesale prices have stabilized. I clearly 87 00:03:55,400 --> 00:03:57,480 Speaker 2: we want them to be much bigger than what they are. 88 00:03:58,840 --> 00:04:00,480 Speaker 2: And a big part of it as well is that 89 00:04:00,560 --> 00:04:02,720 Speaker 2: if you look at a household power bill, was only 90 00:04:02,720 --> 00:04:05,520 Speaker 2: about half of the household power bill actually comes from 91 00:04:05,520 --> 00:04:08,040 Speaker 2: the generation in retail. So there are other factors that 92 00:04:08,080 --> 00:04:09,640 Speaker 2: need to be worked on. But in terms of what's 93 00:04:09,680 --> 00:04:12,120 Speaker 2: happening in the alegis industry, I think you're right. We 94 00:04:12,160 --> 00:04:14,680 Speaker 2: are building at a good pace, and we keep going 95 00:04:14,680 --> 00:04:16,880 Speaker 2: at this rate and we affirm it, then things will 96 00:04:16,880 --> 00:04:17,520 Speaker 2: get much better. 97 00:04:17,560 --> 00:04:20,200 Speaker 1: The LPG part of that equation is is that a 98 00:04:20,279 --> 00:04:21,520 Speaker 1: biggie As far as you can. 99 00:04:21,360 --> 00:04:25,920 Speaker 2: See, it's going to be challenging. There's been a number 100 00:04:25,920 --> 00:04:28,120 Speaker 2: of studies that have taken place to look at what 101 00:04:28,160 --> 00:04:30,400 Speaker 2: the options are. There are actually a number of options 102 00:04:30,440 --> 00:04:33,320 Speaker 2: that the LNG is one, but there are others, including 103 00:04:33,360 --> 00:04:37,560 Speaker 2: the Huntley firming option and expanding that. Maybe some diesel peaking, 104 00:04:37,600 --> 00:04:41,520 Speaker 2: but we do need some form of firming support for 105 00:04:41,640 --> 00:04:44,320 Speaker 2: those dry periods, but there are other options in addition 106 00:04:44,400 --> 00:04:44,800 Speaker 2: to LNG. 107 00:04:45,040 --> 00:04:47,400 Speaker 1: All right, appreciate your insight. Stuart Hamilton, who is the 108 00:04:47,960 --> 00:04:50,279 Speaker 1: firming term? If you're not aware of it's just that 109 00:04:50,520 --> 00:04:52,680 Speaker 1: it's the gap, it's what you need in between what 110 00:04:52,720 --> 00:04:55,559 Speaker 1: you want and what you've got. So coal the cold 111 00:04:55,600 --> 00:04:58,720 Speaker 1: Huntly deal is currently so. In other words, when things 112 00:04:58,760 --> 00:05:01,360 Speaker 1: don't blow and the sun does shine and it doesn't rain, 113 00:05:01,720 --> 00:05:05,200 Speaker 1: you fire up the cold that's firming. Stuart Hamilton out 114 00:05:05,200 --> 00:05:08,599 Speaker 1: of Mercury. For more from The Mic Asking Breakfast, listen 115 00:05:08,680 --> 00:05:11,640 Speaker 1: live to News Talks at B from six am weekdays, 116 00:05:11,839 --> 00:05:13,880 Speaker 1: or follow the podcast on iHeartRadio.