Snowy Hydro’s Red Energy increases power bills for more than 10,000 SA households
An electricity retailer owned by the federal government has raised its SA prices that will hit more than 10,000 customers. See if you’re affected and watch the video on how to get a better deal.
SA News
Don't miss out on the headlines from SA News. Followed categories will be added to My News.
Exclusive: An electricity retailer owned by the federal government has raised its South Australian prices by close to five per cent, adding nearly $120 to annual bills for more than 10,000 customers.
The move by Snowy Hydro subsidiary Red Energy will consume most of the rebate on offer from the federal government in 2025-26, which has been halved to $150.
Snowy Hydro said increasing Red Energy’s prices had been a “difficult decision”.
A spokeswoman said it knew “many households are facing cost of living pressures and we’ve done our best to keep prices as low as possible.
“These increases reflect rising costs such as wholesale and network costs, which make up over 70 per cent of the average bill,” she said.
The Snowy Hydro spokeswoman said its plans would still be competitive.
It is certainly true that its rivals are also raising prices. The biggest hike is by AGL, which as this masthead has previously revealed is lifting rates by 7.8 per cent.
Red Energy has 11,000 customers in SA and more than one million nationally, making it the fourth-largest retailer.
Many are seething after receiving price change notices – particularly in NSW, where prices will rise by an average of 15 per cent.
“Either withdraw these increases, or expect a lot of flack and departures,” customer Rob Farr wrote on Red Energy’s Facebook page.
Another, Maarten van Valen, said: “It’s a shame because you’re a good company but goodbye Red Energy.”
“Will definitely be looking for a new supplier,” wrote Sean Ward.
“67-cent increase on daily service to property rate is ludicrous,” said customer Alexander Ware. “Looks like I’ll find a new provider.”
This masthead asked the office of federal Climate Change and Energy Minister Chris Bowen whether he considered Commonwealth-owned Red’s increase was acceptable.
In response to the question, Mr Bowen’s office provided an excerpt from a speech he gave three weeks ago.
The excerpt said the government was working to “deliver a better regulated pricing mechanism which will put downward pressure on electricity bills and also ensure the energy market better utilises the huge uptake of rooftop solar and increasingly batteries.”
Mr Bowen is not in Australia at the moment. He is currently touring the Pacific to “reinforce the government’s commitment to practical climate action and progress discussions on our bid to host COP31 in 2026.”
COP31 is the world’s biggest clean energy trade fair.
Snowy Hydro’s revenue from retail energy sales rose by 21 per cent in 2023-24, which is the most recent period it has reported. That increase was twice the pace of growth in customer numbers.
Earnings nearly doubled on the previous financial year, to $900m.
Snowy’s head of retail Iain Graham was paid $1.69m in 2023-24, up $350,000 on $1.34m he pocketed the year before.
The company said 2024-25 financial information wasn’t available yet.
Join the conversation
Payout win after Flinders Medical Centre’s ‘botched’ baby treatment
A man left with profound disabilities arising from an infant illness he says the Flinders Medical Centre should have diagnosed has ended his case with a settlement win.
Read more
Watch: Dramatic footage shows roof cave in during house inferno
20 firefighters were called to the dramatic scene- but not before an off duty firefighter had arrived at the scene and rescued a dog trapped inside the house.
Read more