SA Election 2018: SA Best Leader Nick Xenophon makes state election power play with pitch to reduce bills ‘by 20 per cent’ within two years

LOW and middle income households would be targeted for power price reductions delivered by a new not-for-profit retailer — which SA Best say can cut bills by 20 per cent.

• Jay Weatherill pledges 75% renewable energy target
• State Liberals propose $100m home battery plan
• Bulk buy deal to benefit up to 168,000 households
• Election HQ: Latest news and announcements

LOW and middle income households would be targeted for power price reductions delivered by a new not-for-profit retailer — which SA Best say can cut bills by 20 per cent.

SA Best Leader Nick Xenophon released his long-awaited power policy on Thursday.

The headline feature is a pitch to households with annual incomes of $75,000 and small businesses with power bills under $20,000.

Mr Xenophon says he would establish “a not-for-profit community electricity retailer that will bring down power prices”.

To be named the Community Electricity Trust of SA, the retailer would enter into a tender process for a power purchase agreement for the development of a new 150MW dispatchable renewable energy power station in SA, to compete with existing generation market.

It has echoes of two Labor plans, one which helped underpin a business plan to deliver the a Port Augusta solar thermal plant with a contract for public sector energy and another which seeks a bulk-buy for low income households to get lower bills for participants.

This week, Labor has also pledged to lift the state’s renewable energy target to 75 per cent by 2025, up from 50 per cent now.

It is also promising to subsidise solar panel installation.

The Liberal energy plan includes promoting the construction of a new interconnector to NSW and subsidising households which have solar panels to install in-home batteries for storage.

Mr Xenophon said his planned community-based retailer would be “a member-based organisation facilitated by legislation passed through State Parliament”.

It is based on similar overseas models of community electricity trusts, he said.

Mr Xenophon said he expected up to 50,000 households and 5000 small businesses would join the co-op, and their prices would come down by some 20 per cent.

He said the competition would also put downward pressure on prices for consumers not in the co-op.

It would be called cETSA, in a nod to the formerly-privatised state grid company.

Mr Xenophon said energy affordability and reliability would be a key issue if he holds the balance of power, and he would demand the next government slash costs.

“If the government can’t get prices down by 20% in the next two years, or can’t keep the lights on, then the lights will go out in the Premier’s office,” Mr Xenophon said.

“Energy needs to be an absolute focus and priority for the next Government of SA.

“SA-BEST will guarantee that.”

MORE TO COME