AGL cuts .4 per cent off SA household energy prices but may not achieve government’s savings target

SOUTH AUSTRALIAN households will finally get some energy relief — but the drop is much less than forecast by the national energy commission.

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ANOTHER major electricity retailer has announced a cut in South Australian power prices – but it is less than expected.

Energy giant AGL announced a 0.4 per cent decrease for residential customers, prompting fears the State Government’s power plan will not deliver its promised electricity savings of $302 a year.

The power plan was predicated off retailers dropping their fees by 6.9 per cent, as forecast by the Australian Energy Market Commission.

AGL’s price cut follows Origin Energy announcing a 1 per cent drop for residential customers.

Energy Minister Dan van Holst Pellekaan.

But that was offset by gas bills increasing for small businesses.

AGL announced those bills would rise by 4.6 per cent – which Business SA chief Nigel McBride said would affect struggling companies.

“Business SA is concerned that ... could put further pressure on businesses already doing it tough, and in particular in industries including food manufacturing,” he said.

Despite South Australians not receiving the bigger residential price drops forecast by the AEMC, the reduction is a marked change from the previous financial year, when households bills soared.

Energy Minister Dan van Holst Pellekaan said earlier this week that Origin’s drop was proof the Government’s energy policy settings were working.

But Labor energy spokesman Tom Koutsantonis said the much lower than expected drop proved the Government’s spruiked energy savings were “in tatters’.

Premier Steven Marshall said he was “delighted” with any reduction in energy prices and “we are still pushing ahead with our reform agenda”.