SA power prices to surge by $150 a year, report warns

POWER prices will surge up to $150 a year for hundreds of thousands of householders under controversial changes to electricity charges, an investigative report warns.

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POWER prices will surge up to $150 a year for hundreds of thousands of householders under controversial changes to electricity charges, an investigative report warns.

The SA Council of Social Services report also says small businesses face a 50 per cent rise in power costs and that this could force some to close.

The findings are based on a SACOSS investigation into the impact of rule changes by the Australian Electricity Market Commission.

The change is designed to shift the demand for power away from peak periods to take pressure off the network.

In response to the new rules, SA Power Networks has proposed introducing a monthly network charge calculated on a customer’s highest half-hour of energy use between 4pm and 9pm on any given day.

This will provide a “pricing signal’’ to customers to ration the use of appliances, SAPN spokesman Paul Roberts said.

“That means not turning on all major appliances at once during peak periods such as tea time on a hot day, instead delaying using the dishwasher or washing machine until later,’’ he said.

But SACOSS executive director Ross Womersley said the changes, beginning as early as 2017, would see half of all householders worse off.

“It would be madness for this to proceed and any changes should be deferred for at least a few years,’’ he said.

“And this new system should be introduced only on a voluntary basis, which would allow people to opt in only if they believe they will be better off.

“This is because people on low income and many other householders would be worse off.’’

According to the SACOSS report, which will be submitted to SAPN as part of the network company’s consultation process:

APPROXIMATELY 50 per cent of householders would be worse off

THE biggest bill increases could reach $150 a year

THE biggest savings could be just $10 a year

HALF of small businesses would be worse off

ALMOST one-in-five small business would face a 50 per cent increase in energy costs

The report also said there was “limited (public) support’’ for the changes to the billing system.

SACOSS research revealed consumers were concerned about big variation in bills amounts, making it more difficult to budget for electricity costs.

The report said this would have a serious impact on low-income households over summer.

Mr Roberts said SAPN invited “consultation’’ on its proposed billing changes earlier this month because “we know people care about electricity prices’’.

“We’re not only consulting on the detail of the changes, but also an appropriate transition that protects the interests of customers and gives them time to adjust to the changes.”

Submissions to SAPN’s consultation paper close today.