State government resists urge to go further with energy price relief for households

The state government has resisted the urge to go further with energy price relief for households and small businesses, saying the focus was to target those who needed it most.

The state government has resisted the urge to go further with energy price relief for households and small businesses, with Treasurer Stephen Mullighan saying the focus instead was on providing broader concessions targeted at those who needed it most.

More than 420,000 South Australian households and 86,000 small businesses will share in a combined $254.4m in energy bill relief, with the state government teaming up with the federal government on the cost of living measure.

The package was announced by the federal government in its May Budget, with the states already by then having agreed to team up on funding the program.

Eligible households will receive reductions in their energy bills of up to $500, while businesses will receive up to $650, with the state government chipping in half of the cost, with its federal counterpart picking up the rest.

“The $127.2m cost to the state budget is more than three times the amount of support provided in last budget’s cost of living concession increase,’’ Treasurer Stephen Mullighan said on Thursday.

The one-off energy bill rebate will be available for those eligible for existing energy concessions and Family Tax Benefit and Carer Allowance recipients.

The rebates will be applied directly to households’ energy bills, with the program designed that way by the federal government to be non-inflationary.

Businesses which use less than 160MWh of electricity per year will also be eligible for the rebate.

Adelaide CBD skyline illuminated at night. Picture: File

Mr Mullighan said rather than go further than what was announced previously, the government aimed to develop a “much broader package’’ of concession measures which would be targeted at those who need them most.

“Households eligible to receive the one-off energy bill rebate, in addition to the state government energy concession, cost of living concession, water and sewerage concessions and ESL (Emergency Services Levy) remission will benefit from up to $1547 in total relief in 2023-24,’’ Mr Mullighan said.

“The budget measures are designed to provide cost of living relief without adding to inflation. “There is no point putting extra cash in the pockets of people if the RBA feels it needs to take it out the next month with interest rate hikes.

“That’s why this substantial package is carefully targeted.’’

A report out this week from Energy Consumers Australia found that small businesses in SA were paying more for their electricity than their counterparts in other states.

The report says SA businesses forked out $8490 in the year to April on electricity bills, the highest in the nation, while Victorian businesses have the cheapest at $5480.

Gas bills in SA have also risen faster than anywhere else in the country.

ECA interim chief executive Jaqueline Crawshaw said this week more pain was on the way for business owners “with energy prices set to rise up to 30 per cent across the country’’, and SA’s higher costs came in part from the large size of its electricity grid relative to population density.