Electrification

Victorian parliament may scupper bill for new state owned utility

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A move to enshrine the revived State Electricity Commission in the Victorian constitution is doomed to fail, with upper house crossbenchers queuing up to kill it.

Legislation to entrench Labor’s signature election policy in the constitution was introduced to parliament on Wednesday in a bid to safeguard its existence.

“We are going to make it harder for any future Liberal government to destroy the SEC,” Energy Minister Lily D’Ambrosio told reporters.

Any change to Victoria’s Constitution Act requires a special majority, with 60 per cent of MPs needing to vote in favour of the legislation in both houses.

Ms D’Ambrosio argued the bill would be a test of Opposition Leader John Pesutto rather than the government’s ability to wrangle the crossbench.

In January, Mr Pesutto hinted he would unwind the SEC if the coalition wins government in 2026.

“Enshrining the SEC in our state’s constitution will stop the Liberal Party in its tracks, so it can’t destroy Victoria’s state-owned energy,” opposition SEC spokesman David Davis said on Wednesday.

Without opposition support, the Labor government needs at least nine of 12 crossbench members to vote for the bill for it to pass the upper house.

Shooters, Fishers and Farmers Party MP Jeff Bourman, One Nation MP Rikkie-Lee Tyrrell, Libertarian MP David Limbrick and former Liberal-turned-independent Moira Deeming are against the proposal.

“I don’t think putting it (the SEC) in the constitution is a good move or necessary,” Mr Bourman said in a statement.

Ms Tyrrell said the original SEC was a fantastic asset for the state but the entire success of the the resurrected version hinges on “the ill-conceived renewable sector and its net-zero targets”.

Former Labor minister turned Democratic Labour Party MP Adem Somyurek is also unlikely to support the bill.

Victoria’s state-owned electricity assets were privatised in the 1990s.

In a major election promise last year, Labor said it would bring back the SEC if it secured a third term.

Under the plan, Labor is making an initial investment of $1 billion towards renewable energy projects overseen by the SEC to deliver 4.5 gigawatts of power to replace the state’s aging coal-fired power stations.

The projects will be majority-owned by the state.

Animal Justice MP Georgie Purcell told AAP she supported the SEC but was still considering her position on enshrining it in the constitution.

The Greens, who have four upper house MPs, want to see what they’re committing to in the constitution before deciding whether to support the legislation or not.

“We are concerned about a possible financial accommodation levy on the SEC, which we oppose because it would increase Victorians’ power bills for no point,” the party’s coal transition spokesman Tim Read said.

When the SEC plan was announced, former premier Daniel Andrews said it would deliver cheaper power bills and lower emissions.

He later refused to nominate a dollar figure for how much prices would fall.

It is unlikely the SEC legislation will be brought to a vote in the upper house until next year.

Labor had previously vowed to enshrine the body in the constitution this year.

AAP

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