Energy Minister Josh Frydenberg warns of power price cut delay to hit SA

SOUTH Australians will likely be denied power bill relief in the coming year while the Turnbull Government’s energy policy remains up in the air.

SOUTH Australians will likely be denied power bill relief in the coming year while the Turnbull Government’s energy policy remains up in the air.

The Advertiser understands Energy Minister Josh Frydenberg told a private meeting of Coalition MPs that household and business energy costs in SA and NSW were likely to remain steady when retailers announce new prices ahead of July 1. It comes as a blow to the household budget after an independent report released in December tipped a $150 saving on power bills in the coming year – even without the sign-off on the Government’s National Energy Guarantee. But news of flat prices compares favourably with the steep increases felt by SA households last year.

Australian Bureau of Statistics data shows the average SA power bill was 24.4 per cent higher in December that it was in the same month in 2016.

Mr Frydenberg said despite a 30 per cent drop in wholesale prices over the past year, savings were yet to flow through to power bills because instability in SA’s grid pushed retailers to sign longer term supply deals.

He assured his colleagues that Australia was “through the worst” power price rises.

“Actions taken by the Turnbull Government are starting to arrest increases in electricity prices as a result of policy failures under the former Labor State Government,” Mr Frydenberg told The Advertiser.

“To manage wholesale price risk, retailers use hedge contracts to progressively lock in prices between six months and 24 months in advance. Therefore it will take time before all the benefits of the lower wholesale price fully wash through.”

Mr Frydenberg said the Government was also looking to finalise the NEG in coming months which would save consumers about $300 a year.

Six Coalition MPs raised energy in the closed door party room meeting yesterday following Newspoll results showing more voters believe Labor would better maintain supply and lower energy prices. Former prime minister Tony Abbott was believed to have urged Mr Frydenberg to let the party room sign off on the details of the NEG before the policy was put to state leaders.

An Australian Energy Market Commission report had forecast SA households would save $150 on their power bills in the coming year and prices are expected to drop a further $150 the following year.