Investigation into huge increases to SA power bills

SOUTH Australia’s independent utility price watchdog will be asked to probe hikes of up to $261 for annual electricity bills and examine if they are justified.

• FIRST SHOCK: Initially, AGL hiked its power prices ...
• SECOND SHOCK: ... then it was Origin’s turn ...
• THIRD SHOCK: ... and then Energy Australia, by $261 a year
• PENBERTHY: Power price rises a cash grab that needs investigation
• IN-DEPTH: Nation’s highest electricity costs now even worse

SOUTH Australia’s independent utility price watchdog will be asked to probe recent increases of up to $261 for annual electricity bills to examine whether they are justified.

Mineral Resources and Energy Minister Tom Koutsantonis today announced the move to refer price spikes announced last week to the Essential Services Commission of SA.

The Opposition has blamed the State Government’s longstanding green energy policies for the spikes, after analysis found it was forcing baseload fossil fuel suppliers out of the market.

Deloitte Access Economics has found the state’s nation-leading level of wind and solar power increases prices due to their unreliable supply, and also increase the risk of blackouts.

The average increase in the next financial year will be $228 for AGL customers, $117 for Origin and $261 for Energy Australia customers according to recent announcements.

Retailers cited the cost and availability of coal and gas supply for electricity generation as

well as the changing mix of energy generation as reasons for the increases.

ESCOSA has powers to demand information from companies to allow it to assess the factors basis for the recent electricity price increases and make recommendations to the Government.

Mr Koutsantonis said the price increases “add significantly to cost of living pressures”

“While they follow news of decreases to water and gas bills, the electricity price hike also

affects South Australian businesses looking to keep costs down and stay competitive,” he said.

“In light of the community concern over the price increases it is important that customers are

presented with independent advice on whether or not the reasons given for them are justified.

“ESCOSA is perfectly positioned to provide that advice and inform consumers’ decisions.”

The Government is also spending $500,000 on a study to determine the business case for more interconnection with the eastern states to allow more power sharing across the nation.

Opposition energy spokesman Dan van Holst Pellekaan said SA had the highest prices in the nation, despite “multiple warnings” about the policies pursued by the Government.

“This power shock is only the beginning of what is going to be a very painful period for South Australians thanks to the Weatherill Labor Government’s failed electricity policy,” he said.

“Minister Koutsantonis is busy blaming everyone else for high electricity prices, while Premier Weatherill continues to rush towards wind power driving cheap baseload out of the market.

“Labor’s flawed electricity policy led to the closure of the Port Augusta Power Station and now the Weatherill Government is proposing to spend hundreds of millions of taxpayers dollars upgrading an interconnector so it can import coal generated electricity from Victoria.“