Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Earlier this week, more than fourteen hundred customers were impacted
by a power outage in Palmerston. Residents reported faulty phone
lines and multiple power surges on Monday night, with the
outage caused by a fault with underground cables. The majority
of customers were left in the dark for about forty
five minutes while crews made repairs. Now it comes as
(00:20):
the Northern Territory government prepares to introduce an electricity reform
package to Parliament, which it says aims to stabilize the network.
I caught up with the Minister for Minds and Energy
and Renewables, Jared Mayley, a little earlier this morning. Good
morning to your minister.
Speaker 2 (00:38):
Good morning Katie, and good morning to your listeners.
Speaker 1 (00:40):
Now, just a few months ago, we know there were
mass power outages across the top end, impacting residents from
Darwin to Catherine. What does these reforms package include and
why is it required?
Speaker 2 (00:54):
Look, Katie, we inherited a system that simply isn't up
to scratch and we know that in action will then
we can't afford to wait. Literally, lives are at risk
in this situation, Katie. This power system is unstable, old
and hasn't had the investment that's needed. There's been multiple
reports that the previous Labor government have been given and
(01:14):
didn't act on to what we've done come into office.
We've looked at it and we're going to take action
to make sure the electricity system is reliable, affordable and
of course at the least costed territorian. You all know
that we got rid of the polity of the fifty
cent renewables because that was simply costing Territorians too much
and making the system unstable. So we've got rid of
(01:36):
that and we're focusing on making sure that we provide
electricity system that is reliable and is at the cheapest
cost to Territorians. And as what we're doing in this legislation,
we're actually ensuring that our system is up to scratch.
Speaker 3 (01:48):
Minister.
Speaker 1 (01:49):
Look, I weren't for the former Essential Services Minister, so
I suppose I've probably had first hand account of how
bad the system has been over the years. In fact,
that was at a time when the cashualen A substation
blew up. We were facing power outages that in some
cases were lasting hours and hours, and I know that
a report was done at that time which really indicated
(02:10):
that both sides of government hadn't invested into power and
water in the way that we needed to and into
the infrastructure.
Speaker 3 (02:18):
Because let's be honest, it's not that sexy to be.
Speaker 1 (02:20):
Making an announcement about a substation, But what exactly are
these reforms going to mean in a practical sense. Are
we talking money being invested into things like substations?
Speaker 3 (02:31):
What are you going to be doing?
Speaker 2 (02:33):
Look, there's two main parts to it, Katie, and I
suppose it's probably not the sexiest to talk about, but
what we're doing is bringing system control out of power
and water to operate independently. And system control role is
to make sure there's got enough power and put it
through the networks to where it needs to be. So
that's at the moment sitting in power and water that's
coming out is going to be run by an independent body.
It's going to keep the lights on. That's the first
(02:56):
part of it. And the second part, Katie, is we're
going to publish a new governance arrangement in relation to
procurement of the electricity assets. At the moment, we know
we've got three different gocks and non government organizations and
they are doing their own things. So what we're doing
is bringing all together and we're going to make sure
that the taxpayers money is spent wisely. For example, we've
(03:17):
come into office and we work out that TG and
Power and Water are both buying these two condensers which
do the same job at costing roughly twenty million dollars
if not more, And that's a pretty conservative estimate to
be able to keep the system stable to what we've done,
and we only need one of those, So instead of
spending another twenty million dollars to have one sitting in
the shed, we're making sure that this pecurement process is
(03:38):
going to be best value for money, because, like I
said earlier, we're trying to make sure that we get
the energy system up and running and the electricity is
at the least costs to four territoriums.
Speaker 1 (03:48):
Look again, I know for a lot of people listening
this morning, it may not mean neither here nor there
to them where the system control is working under Power
and Water or independently. But are we talking here we're
talking potentially about job losses.
Speaker 2 (04:02):
I would suspect no, no, Well, the people with system
controlers coming across and it will cost a little bit
more to get the getting up and running to start with.
But this is going to be the same people coming across,
but operating independently and having a different chain of command
coming down from independent people keeping it out of Pound Water.
This is about keeping the lights on, Katie. Essentially, the
(04:24):
system has been neglected and we know the labor government
have been in powerful from nineteen to the last twenty
odd years, so we need to get in and we
need to fix it. So the renewal policy has been
a disaster. We're here to make sure the electricity is
available for territory and at the least possible.
Speaker 1 (04:39):
So in terms of the governance arrangements changing, how exactly
is that going to work. We know that Power and
Water is obviously a government owned organizational and it operates independently,
but how exactly is this governance arrangement going to work.
Is it going to mean that we're effectively privatizing Power Water?
Speaker 2 (05:01):
No, No, absolutely not, Cat. We're definitely not privatizing. What
we're doing is just bringing our system control out of
Power and Water to have an independent system controller which
won't have the Power and Water board sitting over the
top of it telling you what to do. So this
system control will be taught and making sure that power
is spread across the network at the best possible price
(05:22):
and when it's needed because it changes depending on the
temperature and where who's using what sort of power, So
it gets pretty complicated, but it's really about trying to
make sure that this system is reliable. Like he do,
we just know this this week. We've got a non
reliable notice of power and water issues for this week,
which is basically and that's what this power black out
in Parmis was talking about. It was really really hot.
(05:44):
There's a lot of general a lot of air cons
going and we need to make sure we spread that
load correctly. And that's what this system control is going
to do.
Speaker 3 (05:50):
So in a real practical sense.
Speaker 1 (05:52):
You know, for those out there listening this morning, they're
going to be thinking, Okay, well, how does this system
control working independently and also the governance arrangements changing, How
is that going to ensure that my power is reliable
and that the prices aren't going to go up.
Speaker 2 (06:07):
Well, if we don't do anything, Katie, that's really the cost.
If we don't do anything, power will be unreliable and
the cost will go up. So this is about acting
now to make sure that we do have reliable power
and we do have those costs at a reasonable price, because,
like I said earlier, this is literally a light at
risk here. People have air cons they have medical equipment
(06:29):
up and running, and we need to make sure that
they have reliable power and if we don't act, that's
when the problem will run.
Speaker 1 (06:36):
Right, all right, So I suppose I'm just trying to
make it as clear in my brain because I know
our listeners will be trying to do the same. So essentially,
what we're going to see is amendments to the Electricity
Reform Acts, So that's going to establish this new market
and governance arrangement for the procuring of electricity assets. Then
we're going to see changes to the Electricity System.
Speaker 3 (06:57):
And Market Operator Bill.
Speaker 1 (06:59):
That's going to see the establishment of the Northern Territory
Electricity System and Market Operator as an independent system controller.
So to anybody out there listening this morning who's thinking,
all right, does this mean we're effectively taking that work
away from power and water? Is that? Is it going
to mean big changes to power and water as you
(07:22):
know as an organization.
Speaker 2 (07:25):
No, it's not. Okay, What we're doing is taking out
the system control which is operated inside Power and Water
and bringing it out to an independent system control, so
it will be the same people will come across and
Power Water will be about doing their job and this
system control will be controlling where the power comes from
and where it goes to. So it's not actually privatizing
any system. This is just making sure that the system
is reliable and that we get power where it needs
(07:48):
to go. We know that demands have increased recently, and
we know that we've got some gas shortages as well,
just making sure that the power is reliable and we
keep the light on.
Speaker 1 (07:58):
So with the gas shortages, is there, so like, are
we going to be making any changes in that space
as well to try and sort this issue out a bit?
Speaker 2 (08:05):
Well, Yes, b Toloo is coming online, Katie, and we're
working hard to make sure that gas gets out of
the ground and gets to our market up here into
our generators. We know that E and I, where Black
Tip is reducing an amount of gas is bringing out
of the ground. Central Petroleum in South Bale Springs is
picking up the slack there and we have to buy
spot gas from impacts when we need it. Which is expensive.
(08:26):
So what we want to do is make sure that
we get a reliable gas supply at a reasonable price,
because we simply can't afford to keep buying spot price
gas from impacts, which is keeping lots on at the moment.
This is another failure that the previous over government didn't do.
And you know, we need to get the gas out
of the ground and be to Loo. We need to
get it up here to our generators, and we need
to also get it off to the markets to sell
(08:47):
it so they can make some money.
Speaker 1 (08:48):
Now, I know you'll press for time, so I just
want to get through the next couple of things quite quickly.
I mean, just in relation to the announcement that you
are making today, do you believe that these changes, once
they pass through Parliament, that they are going to stabilize
our network and prevent those further outages like the one
that we saw earlier in the week.
Speaker 2 (09:08):
That that's what we that's what we're trying to do.
And this is only the beginning of the work, Katie.
There's more work to be done. So don't get me wrong.
This is our one change We're going to fix that.
This is a start, and there's a lot more work
needs to be done in relation to securing a reliable
power because quite frankly, over the last nineteen years there's
been a lack of action and which has caused a
major problem. And like I said, lives are at risk here, Katie.
(09:31):
We need to make sure that we get this power reliable.
And this is the first step and it's only beginning,
and we've been in office for a year and we're
going to keep working at it because keeping the lights
on is a number one priority for me, is the
Energy Minister?
Speaker 1 (09:42):
All right, Minister, I do want to ask you about
this meeting that was held between the Prime Minister Anthony
Albanezi and the US President yesterday and well they struck
a landmark agreement on critical minerals with investment committed to
the Arafura Nolan's Rare Earth project. What does this mean
for the Northern terirat Tree.
Speaker 2 (10:01):
Well, Katie, this is going to be great news from
the Northern Territory. We know that two Australian projects were
named and Ourfura Nolean's which is about one hundred k's
north of our Oft Springs, was named in that agreement.
This is going to be a real game changer for
the Central We're talking one point five billion dollar project here, Cardi,
So there's going to be a whole range of local
(10:21):
supplies and supply chains coming in to be able to
service that mine and also that processing plant that with
fingers Cross are going to be built in the near future.
We're talking six hundred jobs during construction and over three
hundred and fifty on ongoing in this project, and that's
a really big boost for the Central of Australian. Our
Springs I think is going to be able to become
(10:43):
a service center to service because this mine and the
processing plant, which is some hundred k's north of our
of Springs, is going to be great for the town.
It's going to be great for the Northern Territory. We're
going to have these supply chains. Local businesses will benefit
from Miss Cadi.
Speaker 1 (10:56):
Miniester, what kind of timeframe are we looking at here
for this mine to get up and running. I know
everybody around the world's talking about it now. Following on
from that meeting, Well.
Speaker 2 (11:06):
Katie, I hope it starts tomorrow. You'll have to do.
But in realistic you know, the owners of that mind
have got to rich financial investment decisions and that they're
waiting on a bit more money in this agreement. I
think Katie will get them over the line. I'm sure
that they're working twenty four to seven right now to
get the final touches to the agreement done and they'll
(11:26):
make some announcements in the near future. And we were
certainly working with them to do what we can to
make sure that they have no handbrake or roadblocks here
and all the teritory. We don't need to get the
Feds need to get on board. We need to look
Gosling and those schedule labor ministers. They need to do
their bit as well here, Cadie. This will be an
absolute game changer and a huge benefit for all the territory.
(11:47):
We're working hard. The Speeds need to keep the pressure
on them as well to ensure that this agreement's not
just a side piece of paper over there in USA
and comes back to Australia and nothing happens. We need
to work hard and will be doing it hard. Hopefully
that federal abor government do their bit as well.
Speaker 1 (12:02):
Look, I would hope that everybody's on board here team
Territory and let's try and make it happen.
Speaker 3 (12:07):
Sooner rather than later.
Speaker 2 (12:09):
I agree, Okay. Like I said, I'd like to see
it sign off tomorrow. This is going to be a
great opportunity for the Northern Territory to put itself on
the map. There's going to be six hundred jobs in
the supply chains, there's going to be so much local
work and as well that Caddie, there will be an opportunity.
This is a thirty eight year mind life. There have
an opportunity for young people in the Northern Territory to
be able to get the skills to go and work
(12:30):
in that processing plant. Well, Jered know that there'll be
some fly in flyout, but this is going to be
a great opportunity for these young people to learn the
skills and become trades in that field.
Speaker 1 (12:41):
Jered Maylee Minister for Minds and Energy and also renewable
So we better leave it there. I know you've got
to get into Parliament. Thanks so much for your time
this morning.
Speaker 2 (12:49):
Thank you Katie, Thank you
Earlier this week, more than fourteen hundred customers were impacted
by a power outage in Palmerston. Residents reported faulty phone
lines and multiple power surges on Monday night, with the
outage caused by a fault with underground cables. The majority
of customers were left in the dark for about forty
five minutes while crews made repairs. Now it comes as
(00:20):
the Northern Territory government prepares to introduce an electricity reform
package to Parliament, which it says aims to stabilize the network.
I caught up with the Minister for Minds and Energy
and Renewables, Jared Mayley, a little earlier this morning. Good
morning to your minister.
Speaker 2 (00:38):
Good morning Katie, and good morning to your listeners.
Speaker 1 (00:40):
Now, just a few months ago, we know there were
mass power outages across the top end, impacting residents from
Darwin to Catherine. What does these reforms package include and
why is it required?
Speaker 2 (00:54):
Look, Katie, we inherited a system that simply isn't up
to scratch and we know that in action will then
we can't afford to wait. Literally, lives are at risk
in this situation, Katie. This power system is unstable, old
and hasn't had the investment that's needed. There's been multiple
reports that the previous Labor government have been given and
(01:14):
didn't act on to what we've done come into office.
We've looked at it and we're going to take action
to make sure the electricity system is reliable, affordable and
of course at the least costed territorian. You all know
that we got rid of the polity of the fifty
cent renewables because that was simply costing Territorians too much
and making the system unstable. So we've got rid of
(01:36):
that and we're focusing on making sure that we provide
electricity system that is reliable and is at the cheapest
cost to Territorians. And as what we're doing in this legislation,
we're actually ensuring that our system is up to scratch.
Speaker 3 (01:48):
Minister.
Speaker 1 (01:49):
Look, I weren't for the former Essential Services Minister, so
I suppose I've probably had first hand account of how
bad the system has been over the years. In fact,
that was at a time when the cashualen A substation
blew up. We were facing power outages that in some
cases were lasting hours and hours, and I know that
a report was done at that time which really indicated
(02:10):
that both sides of government hadn't invested into power and
water in the way that we needed to and into
the infrastructure.
Speaker 3 (02:18):
Because let's be honest, it's not that sexy to be.
Speaker 1 (02:20):
Making an announcement about a substation, But what exactly are
these reforms going to mean in a practical sense. Are
we talking money being invested into things like substations?
Speaker 3 (02:31):
What are you going to be doing?
Speaker 2 (02:33):
Look, there's two main parts to it, Katie, and I
suppose it's probably not the sexiest to talk about, but
what we're doing is bringing system control out of power
and water to operate independently. And system control role is
to make sure there's got enough power and put it
through the networks to where it needs to be. So
that's at the moment sitting in power and water that's
coming out is going to be run by an independent body.
It's going to keep the lights on. That's the first
(02:56):
part of it. And the second part, Katie, is we're
going to publish a new governance arrangement in relation to
procurement of the electricity assets. At the moment, we know
we've got three different gocks and non government organizations and
they are doing their own things. So what we're doing
is bringing all together and we're going to make sure
that the taxpayers money is spent wisely. For example, we've
(03:17):
come into office and we work out that TG and
Power and Water are both buying these two condensers which
do the same job at costing roughly twenty million dollars
if not more, And that's a pretty conservative estimate to
be able to keep the system stable to what we've done,
and we only need one of those, So instead of
spending another twenty million dollars to have one sitting in
the shed, we're making sure that this pecurement process is
(03:38):
going to be best value for money, because, like I
said earlier, we're trying to make sure that we get
the energy system up and running and the electricity is
at the least costs to four territoriums.
Speaker 1 (03:48):
Look again, I know for a lot of people listening
this morning, it may not mean neither here nor there
to them where the system control is working under Power
and Water or independently. But are we talking here we're
talking potentially about job losses.
Speaker 2 (04:02):
I would suspect no, no, Well, the people with system
controlers coming across and it will cost a little bit
more to get the getting up and running to start with.
But this is going to be the same people coming across,
but operating independently and having a different chain of command
coming down from independent people keeping it out of Pound Water.
This is about keeping the lights on, Katie. Essentially, the
(04:24):
system has been neglected and we know the labor government
have been in powerful from nineteen to the last twenty
odd years, so we need to get in and we
need to fix it. So the renewal policy has been
a disaster. We're here to make sure the electricity is
available for territory and at the least possible.
Speaker 1 (04:39):
So in terms of the governance arrangements changing, how exactly
is that going to work. We know that Power and
Water is obviously a government owned organizational and it operates independently,
but how exactly is this governance arrangement going to work.
Is it going to mean that we're effectively privatizing Power Water?
Speaker 2 (05:01):
No, No, absolutely not, Cat. We're definitely not privatizing. What
we're doing is just bringing our system control out of
Power and Water to have an independent system controller which
won't have the Power and Water board sitting over the
top of it telling you what to do. So this
system control will be taught and making sure that power
is spread across the network at the best possible price
(05:22):
and when it's needed because it changes depending on the
temperature and where who's using what sort of power, So
it gets pretty complicated, but it's really about trying to
make sure that this system is reliable. Like he do,
we just know this this week. We've got a non
reliable notice of power and water issues for this week,
which is basically and that's what this power black out
in Parmis was talking about. It was really really hot.
(05:44):
There's a lot of general a lot of air cons
going and we need to make sure we spread that
load correctly. And that's what this system control is going
to do.
Speaker 3 (05:50):
So in a real practical sense.
Speaker 1 (05:52):
You know, for those out there listening this morning, they're
going to be thinking, Okay, well, how does this system
control working independently and also the governance arrangements changing, How
is that going to ensure that my power is reliable
and that the prices aren't going to go up.
Speaker 2 (06:07):
Well, if we don't do anything, Katie, that's really the cost.
If we don't do anything, power will be unreliable and
the cost will go up. So this is about acting
now to make sure that we do have reliable power
and we do have those costs at a reasonable price, because,
like I said earlier, this is literally a light at
risk here. People have air cons they have medical equipment
(06:29):
up and running, and we need to make sure that
they have reliable power and if we don't act, that's
when the problem will run.
Speaker 1 (06:36):
Right, all right, So I suppose I'm just trying to
make it as clear in my brain because I know
our listeners will be trying to do the same. So essentially,
what we're going to see is amendments to the Electricity
Reform Acts, So that's going to establish this new market
and governance arrangement for the procuring of electricity assets. Then
we're going to see changes to the Electricity System.
Speaker 3 (06:57):
And Market Operator Bill.
Speaker 1 (06:59):
That's going to see the establishment of the Northern Territory
Electricity System and Market Operator as an independent system controller.
So to anybody out there listening this morning who's thinking,
all right, does this mean we're effectively taking that work
away from power and water? Is that? Is it going
to mean big changes to power and water as you
(07:22):
know as an organization.
Speaker 2 (07:25):
No, it's not. Okay, What we're doing is taking out
the system control which is operated inside Power and Water
and bringing it out to an independent system control, so
it will be the same people will come across and
Power Water will be about doing their job and this
system control will be controlling where the power comes from
and where it goes to. So it's not actually privatizing
any system. This is just making sure that the system
is reliable and that we get power where it needs
(07:48):
to go. We know that demands have increased recently, and
we know that we've got some gas shortages as well,
just making sure that the power is reliable and we
keep the light on.
Speaker 1 (07:58):
So with the gas shortages, is there, so like, are
we going to be making any changes in that space
as well to try and sort this issue out a bit?
Speaker 2 (08:05):
Well, Yes, b Toloo is coming online, Katie, and we're
working hard to make sure that gas gets out of
the ground and gets to our market up here into
our generators. We know that E and I, where Black
Tip is reducing an amount of gas is bringing out
of the ground. Central Petroleum in South Bale Springs is
picking up the slack there and we have to buy
spot gas from impacts when we need it. Which is expensive.
(08:26):
So what we want to do is make sure that
we get a reliable gas supply at a reasonable price,
because we simply can't afford to keep buying spot price
gas from impacts, which is keeping lots on at the moment.
This is another failure that the previous over government didn't do.
And you know, we need to get the gas out
of the ground and be to Loo. We need to
get it up here to our generators, and we need
to also get it off to the markets to sell
(08:47):
it so they can make some money.
Speaker 1 (08:48):
Now, I know you'll press for time, so I just
want to get through the next couple of things quite quickly.
I mean, just in relation to the announcement that you
are making today, do you believe that these changes, once
they pass through Parliament, that they are going to stabilize
our network and prevent those further outages like the one
that we saw earlier in the week.
Speaker 2 (09:08):
That that's what we that's what we're trying to do.
And this is only the beginning of the work, Katie.
There's more work to be done. So don't get me wrong.
This is our one change We're going to fix that.
This is a start, and there's a lot more work
needs to be done in relation to securing a reliable
power because quite frankly, over the last nineteen years there's
been a lack of action and which has caused a
major problem. And like I said, lives are at risk here, Katie.
(09:31):
We need to make sure that we get this power reliable.
And this is the first step and it's only beginning,
and we've been in office for a year and we're
going to keep working at it because keeping the lights
on is a number one priority for me, is the
Energy Minister?
Speaker 1 (09:42):
All right, Minister, I do want to ask you about
this meeting that was held between the Prime Minister Anthony
Albanezi and the US President yesterday and well they struck
a landmark agreement on critical minerals with investment committed to
the Arafura Nolan's Rare Earth project. What does this mean
for the Northern terirat Tree.
Speaker 2 (10:01):
Well, Katie, this is going to be great news from
the Northern Territory. We know that two Australian projects were
named and Ourfura Nolean's which is about one hundred k's
north of our Oft Springs, was named in that agreement.
This is going to be a real game changer for
the Central We're talking one point five billion dollar project here, Cardi,
So there's going to be a whole range of local
(10:21):
supplies and supply chains coming in to be able to
service that mine and also that processing plant that with
fingers Cross are going to be built in the near future.
We're talking six hundred jobs during construction and over three
hundred and fifty on ongoing in this project, and that's
a really big boost for the Central of Australian. Our
Springs I think is going to be able to become
(10:43):
a service center to service because this mine and the
processing plant, which is some hundred k's north of our
of Springs, is going to be great for the town.
It's going to be great for the Northern Territory. We're
going to have these supply chains. Local businesses will benefit
from Miss Cadi.
Speaker 1 (10:56):
Miniester, what kind of timeframe are we looking at here
for this mine to get up and running. I know
everybody around the world's talking about it now. Following on
from that meeting, Well.
Speaker 2 (11:06):
Katie, I hope it starts tomorrow. You'll have to do.
But in realistic you know, the owners of that mind
have got to rich financial investment decisions and that they're
waiting on a bit more money in this agreement. I
think Katie will get them over the line. I'm sure
that they're working twenty four to seven right now to
get the final touches to the agreement done and they'll
(11:26):
make some announcements in the near future. And we were
certainly working with them to do what we can to
make sure that they have no handbrake or roadblocks here
and all the teritory. We don't need to get the
Feds need to get on board. We need to look
Gosling and those schedule labor ministers. They need to do
their bit as well here, Cadie. This will be an
absolute game changer and a huge benefit for all the territory.
(11:47):
We're working hard. The Speeds need to keep the pressure
on them as well to ensure that this agreement's not
just a side piece of paper over there in USA
and comes back to Australia and nothing happens. We need
to work hard and will be doing it hard. Hopefully
that federal abor government do their bit as well.
Speaker 1 (12:02):
Look, I would hope that everybody's on board here team
Territory and let's try and make it happen.
Speaker 3 (12:07):
Sooner rather than later.
Speaker 2 (12:09):
I agree, Okay. Like I said, I'd like to see
it sign off tomorrow. This is going to be a
great opportunity for the Northern Territory to put itself on
the map. There's going to be six hundred jobs in
the supply chains, there's going to be so much local
work and as well that Caddie, there will be an opportunity.
This is a thirty eight year mind life. There have
an opportunity for young people in the Northern Territory to
be able to get the skills to go and work
(12:30):
in that processing plant. Well, Jered know that there'll be
some fly in flyout, but this is going to be
a great opportunity for these young people to learn the
skills and become trades in that field.
Speaker 1 (12:41):
Jered Maylee Minister for Minds and Energy and also renewable
So we better leave it there. I know you've got
to get into Parliament. Thanks so much for your time
this morning.
Speaker 2 (12:49):
Thank you Katie, Thank you
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