Federal Energy Department spends $2m in 3 weeks on consultants
The federal Energy Department spent more than $2 million in just three weeks on consultants, despite Labor’s promise in opposition to cut back on external adviser costs.
NSW
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More than $2 million was spent in just three weeks on consultants by Energy Minister Chris Bowen’s department.
The spendathon by the Department of Climate Change, Energy, the Environment and Water came despite a promise when Labor was in opposition to cut back on the amount of taxpayers’ money spent on expensive external consultants.
The biggest winner was one of the “Big Four” accounting firms KPMG, which has won more than $735,000 for three contracts to give professional advice on electricity market modelling, gas market regulatory impact analysis and energy policy research.
They were closely followed by EY — formerly known as Ernst & Young — which won a contract for $161,000 for professional advice on electricity market modelling and another for $247,644 for professional advice on energy policy.
Their rival PwC — formerly Price Waterhouse Cooper — hasn’t missed out either. They will be paid $273,900 by the department for “Professional Advice”.
The single biggest contract went to ACIL ALLEN, which will be paid $346,267 for professional advice on gas reliability standards.
Other winners include Common Capital, which will get $184,045.40 for professional advice on external power supplies, Aurora Energy Research — $33,000 for research and price forecasts and analysis — and DT Gilbert & S Nickless & WR Spain, who have won $83,600 for professional advice on the Paris climate change agreement.
The contracts were let between October 18 and November 7, and come despite the department employing thousands of public servants.
Opposition Leader Peter Dutton said the spending on consultants showed that, despite promising 97 times before the election to lower power bills, Prime Minister Anthony Albanese had no idea which way to jump on energy prices.
“The government has us on a track to higher prices and the increasing prospect of blackouts. And now we know they are scrambling and spending millions of dollars at external consultants to try and fix the energy market,” he said.
“They are making it up as they go, and it’s just not good enough and the Prime Minister and Mr Bowen need to explain this increased spending on external consultants.”
A spokesman for Mr Bowen said the consultants had been necessary for creating a new department.
“Labor went to the election promising to significant reduce spending on corporate labour hire and external management contracts,” he said.
“Finance Minister Katy Gallagher is in the process of modernising the APS (Australian Public Service), including an internal consulting model which is under development.
“Until that reform is completed, it is appropriate to engage consultants where it is required.”
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