Australian Energy Regulator announces cuts to energy prices for SA households and small businesses

South Australians can breathe a sigh of relief after the national energy regulator announced cuts to energy prices for families and businesses. See how much you’ll save.

South Australian households and small businesses can expect electricity cost relief in the coming financial year as the Australian Energy Regulator announced energy price cuts.

From July, the average SA household can expect to save a minimum of $63 per annum while small businesses can expect relief in the range of $512 per annum – representing a 2.8 per cent and 8.8 per cent reduction in default energy prices respectively.

The cuts will complement the Albanese Government’s $300 energy rebate announced during last week’s federal budget.

Speaking to the media on Thursday, Energy Minister Tom Koutsantonis said the state government’s development of renewable energy projects were adding supply to the wholesale energy market which in turn was driving down retail prices.

Minister Tom Koutsantonis said the state government was building a cleaner, more affordable and reliable energy system and the price cuts showed they were on the right path. Picture: Roy VanDerVegt

Liberal Member for Morphett, Stephen Patterson, said electricity prices still remained higher than those in Sydney, Melbourne, and Brisbane. Picture: Emma Brasier

“We are making SA more resilient by supporting new renewable generators and batteries and by developing our Hydrogen Jobs Plan, which will be essential to shoring up energy security,” he said.

“We are building a cleaner, more affordable and reliable energy system and these cuts to consumer bills prove we are getting it right.”

While the discounts announced represent the minimum amount of savings consumers can expect to receive – or an energy price ceiling – the minister urged South Australians to visit the government’s Energy Made Easy website to shop around for greater savings.

“You can compare your current market offer or default offer with the very best offers in the market and what that can give you, is some dramatic savings,” he said.

But Liberal MP Stephen Patterson hit back at Mr Koutsantonis, saying despite the July reductions, electricity prices remained higher than those in Sydney, Melbourne, and Brisbane.

“Any reduction in prices is welcomed but South Australian working families and small businesses still face another year of sky-high electricity bills,” he said.

“They’re paying almost $700 extra for electricity while small businesses have been forced to find more than $1250.”

Interim chief executive of the Australian Energy Council Ben Barnes said today’s reduction in default energy prices came at a cost to energy retailers.

“As the energy grid continues to transition, we would expect to see wholesale and retail costs decline whilst network costs will increase,” he said.

“To date, reductions in the Default Market Offer price have focused on reductions in retailers’ costs and margin, but there is little left to squeeze.

Originally published as Australian Energy Regulator announces cuts to energy prices for SA households and small businesses