Electricity bills: SA Power Networks wants to increase its take from householders

SA Power Networks wants to charge an extra $46 a year for each household electricity connection to cover rising supply costs.

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SA Power Networks wants to charge an extra $46 a year for each household electricity connection to cover rising supply costs.

The Australian Energy Regulator yesterday released SA Power Networks’ wishlist for prices from July 1, which aims to recoup a 2.5 per cent increase in costs to distribute power.

If approved, some businesses would face even higher supply charges in 2019-20.

However, electricity retailers might chose to absorb some or all of the increases, rather than pass them on to customers and risk them switching to another company.

A spokesman for SA Power Networks said: “On average, in 2019-20, distribution charges will rise by $46 for residential customers and $179 for small to medium-sized business customers based on consumption of 20MWh per annum’’.

SA Power Networks expected its charges to fall by $40 for residential customers and $111 for small to medium-sized business in 2020-21, when a new five-year pricing period is set to start. The Australian Energy Regulator will respond to SA Power Networks plan within a month.

Electricity bills likely to go up by $46 from July 1. AAP Image/Julian Smith

“Distribution charges are then proposed to fall in 2020-21 on average by about $40 for residential customers and $111 for small to medium-sized business customers,’’ the spokeswoman said.

It is likely to be approve the increases after a technical review to check calculations.

Retail electricity companies will then factor into their prices the increased costs, but due to fierce competition could give all or some of the revenue increases back to customers.