State owned utility to be protected under constitution after cross-bench changes heart

Victoria’s constitution will be altered to include Labor’s signature election promise to revive the State Electricity Commission after a surprise change of heart from cross-benchers.

State-owned electricity assets were privatised in the 1990s and former-Labor premier Daniel Andrews vowed to bring back the government-owned renewable energy company if his party won a third term in 2022.

Legislation to enshrine the commission in the constitution was put on ice earlier in 2024 as the new Labor government struggled to secure the required special majority of 60 per cent of MPs backing the bill in both houses.

The opposition was against the plan and key upper house crossbenchers indicated they wouldn’t support it.

But it has since been revealed the bill passed the state parliament’s upper house with the support of two crossbenchers who previously didn’t back the move.

Former Labor minister turned crossbench MP Adem Somyurek told AAP in November 2023 he was unlikely to support the proposal, while Shooters, Fishers and Farmers Party MP Jeff Bourman said he didn’t think it was necessary.

A Hansard transcript from September 12 shows Mr Bourman went on to vote for it, citing his belief that it would create jobs in eastern Victoria’s regions.

“One of the things I have always believed in is that essential services such as electricity should be held by the state,” Mr Bourman said at the time.

“Over the time of my life I have watched essential services being sold off. This will make it harder, though not impossible.”

In addition to those two crossbenchers and government MPs, the bill secured support from more than 60 per cent of members due the backing of the Greens, Legalise Cannabis and Animal Justice Party.

The final result in the upper house was 24 votes to 16.

Final amendments passed the Labor-controlled lower house on Tuesday.

Energy and Climate Action Minister Lily D’Ambrosio told parliament the legislation ensured the commission would ensure Victoria “keeps being consistently the lowest wholesale electricity market in the country”.

“We know what can happen and what has happened when our assets get sold off, we do not want to see that ever happening again,” she said.

Opposition environment and planning spokesman James Newbury claimed “nothing meaningful” had happened with the commission since the state election.

“What Victorians deserve is reliable, affordable and secure energy,” he said.

The legislation will now be sent to the governor for royal assent and pass into law.

AAP