Federal Court dismisses SA Power Networks’ third bid to increase its revenue, sparing customers a price hike during hot summer weather

AS temperatures soar across the state, the Federal Court has dismissed a power network’s last-ditch bid to increase its revenue — sparing households an unwanted price hike.

• SA Power Networks pushes to be able to charge more
• Koutsantonis seeks to short circuit power price rise
• Tribunal rejects SA Power Networks’ bid to increase prices
• Network makes last-ditch bid to up revenue, increase prices

A POWER network’s last-ditch bid to increase its revenue has been dismissed — sparing households an unwanted price hike — as temperatures soar across the state.

The Federal Court yesterday dismissed SA Power Networks’ third attempt to escalate its long-running price dispute.

It had sought to raise $4.53 billion in revenue from customers between 2015 and 2020, but was limited to seeking $3.84 billion by an Australian Energy Regulator ruling.

Outside court, the SA Council of Social Service — which opposed SAPN in the case — welcomed the decision.

“This confirms our view that the original proposal was excessive and that the repeated appeals were unnecessary,” it said.

“It’s a big win for SA’s electricity customers and for those groups that worked to challenge the proposal, including Business SA.”

SA Power Networks’ third bid to increase its revenue — upping prices for households — has been disconnected by the Federal Court.

SAPN spokesman Paul Roberts said the company would accept the ruling.

“We anticipated this decision as it reflects decisions already made in other jurisdictions,” he said.

“We have moved on from this matter already and will continue to deliver the most cost efficient distribution services in the national grid.”

The company, formerly known as ETSA, operates the state’s network of poles, wires and power substations.

It challenged both the initial limitation and a second decision upholding it, and wanted the Federal Court to give it leave to seek an additional $180 million from customers — as do network operators interstate.

Yesterday, the court rejected SAPN’s claims the Tribunal erred in its calculations of corporate income tax, bushfire prevention measures and rising labour costs.

It dismissed claims the Tribunal did not show SAPN procedural fairness, saying its decision was not in error and was “open” to be reached on the evidence.

It said the objections raised by SAPN did not warrant judicial review of the previous decisions and dismissed the claim, ordering it pay the Tribunal’s legal costs.

Treasurer Tom Koutsantonis said the decision was “a huge win” for the state.

“SAPN has been attempting to do what all monopolies do — extract as much money as possible from customers,” Mr Koutsantonis said.