South Australian households to get new electricity price shock
SOUTH Australians buckling under the strain of surging electricity bills will face further pain under the latest pricing submission from SA Power Networks.
SOUTH Australians buckling under the strain of surging electricity bills will face further pain under the latest pricing submission from SA Power Networks.
The average household will pay $27 more in annual network fees from July 1 under SAPN’s pricing proposal submitted to the Australian Energy Regulator yesterday, with businesses facing a $30 hike.
SA Council of Social Services chief executive Ross Womersley said network charges made up just 30 to 40 per cent of the average power bill and was “the base” of other charges.
“These charges are just one part of the power bill that’s set to rise in the next 12 months,” Mr Womersley said.
“Whilst in some regards this may seem modest but these are averages and for some people these increases will well exceed the average.”
Energy retailers are yet to set their pricing structures for the 2017-18 financial year, which is expected to result in further significant price rises. SAPN spokesman Paul Roberts said the proposed increase reflected earlier price path submissions set by the regulator.
“(It) follows substantial falls in our distribution charges in the past two years of $190 per annum for residential and $380 per annum for business customers,” he said. “In real terms customers are paying the same for distribution services now as they did in 1999.”
Opposition Leader Steven Marshall said the rise was “the latest increase as part of the never ending story on electricity prices”.
“Unfortunately this won’t be the last increase in electricity bills this year with much larger rises on the way,” Mr Marshall said.
“All South Australians are paying the price for Jay Weatherill’s disastrous electricity policies.”
Energy Minister Tom Koutsantonis said he would wait on AER’s decision before commenting on the proposal.
“While SAPN are seeking an increase in costs handed down to customers, the AER is yet to make a determination on their application and the South Australian Government will await the independent authority’s decision.”
Mr Koutsantonis last year launched a successful challenge in the Australian Competition Tribunal to SAPN’s bid to charge extra revenue from 2015-2020, characterising the proposal as “an unnecessary price hike”. SAPN launched a yet to be resolved Federal Court appeal against the Tribunal’s ruling last November.
Business SA executive director Anthony Penney encouraged SAPN to drop their Federal Court challenge but applauded a “relative flatline” in network charges over the last few years.
“The annual pricing proposal by SAPN represents a small increase in network costs in line with CPI,” he said.