SA Government seeks to short circuit power price rise

THE STATE Government says SA Power Network’s bid to increase supply charges by up to $60 a year — as revealed by advertiser.com on Sunday — was unjustifiable.

SA Power Networks has been attempting to generate more revenue by increase supply charges by up to $60 a year.

THE STATE Government says SA Power Network’s bid to increase supply charges by up to $60 a year — as revealed by advertiser.com on Sunday — was unjustifiable.

The Government will make a submission to the Australian Competition Tribunal hearing in Melbourne this week to argue against any increase in charges sought by the monopoly electricity network firm.

Energy Minister Tom Koutsantonis said the Australian Energy Regulator determined that SAPN could not introduce “these extraordinary increases in charges’’ because “there has been no

compelling evidence put forward to justify them’’.

“That is why I decided to intervene in the appeal process and make a submission to the

Australian Competition Tribunal in Melbourne,’’ Mr Koutsantonis said.

“I have instructed a representative from the Department of State Development to make the case

on behalf of South Australian households and businesses that SAPN is able to meet its service

delivery obligations with the revenue allowance that the AER has determined.’’

The Minister said the Tribunal must “consider the long term interests of

consumers and it is our firm position that the Tribunal must back the Australian Energy

Regulator’s decision.’’

At a press conference this afternoon Mr Koutsantonis also blamed the Liberal Olsen Government’s privatisation of the electricity network in 1998 for recent high power prices.

He said some businesses had been hit by soaring price rises due to the state’s

“limited interconnection’’ with interstate power supply.

“That lack of interconnection exists because Opposition Shadow Treasurer Rob Lucas killed-off

plans to build an interconnector to NSW when he was Treasurer in order to inflate the sales

price of our power assets,’’ Mr Koutsantonis said.