South Australian now has cheaper wholesale electricity than either Victoria or New South Wales for the first time in seven years.
This important achievement will drive investment and job creation in South Australia as we become ever more competitive on electricity prices with our eastern state rivals and provide cost of living relief for South Australian households.
“Driving down the cost of living lies at the heart of the Marshall Government’s policy agenda and cheaper electricity is providing significant relief for South Australian households and businesses,” said Minister for Energy and Mining Dan van Holst Pellekaan.
“The benefits of cheaper wholesale electricity are flowing directly into lower household bills with Origin delivering an average annual household saving of 5.6 per cent, default contracts down 4.4 per cent and AGL dropping household prices by 2.7 per cent this financial year.
“The fall in prices in South Australia means Origin customers will be saving a further $127 dollars off their electricity bills this year, AGL is delivering another $62 savings and customers on default contracts will be saving $85.
“The good news for this financial year is in addition to a 3 per cent or $62 fall in the average annual cost of electricity for households on market contracts during 2018-19 according to the SA Regulator, ESCOSA.”
“Cheaper wholesale electricity is very good news for South Australian businesses large and small and will assist our economic recovery as we emerge from the coronavirus lockdown,” said Minister van Holst Pellekaan.
“ASX Base Future Contract Prices show South Australia maintaining a competitive position on wholesale electricity prices with other states in the national electricity market into the future.
“Because retailers hedge their prices over a number of years it takes time for reduced wholesale prices to flow in full to consumers bills.
“The Marshall Government’s performance is proving that it is possible to both reduce the price of electricity and our impact upon the environment simultaneously.
“The Marshall Government is delivering on its commitment to reduce electricity prices for South Australians whilst driving an ambitious transition to net-100% renewable energy.”
“The proposed SA-NSW Interconnector (Project EnergyConnect) will drive down the price of electricity in both states even further when it comes into operation,” said Minister van Holst Pellekaan.
“Project EnergyConnect will reduce the average South Australian residential electricity bill by $66 and the typical small businesses bill by $132.
“What’s missing in South Australia is bipartisan support from the Labor Party for the necessary steps to reduce both the price of electricity and emissions.
“Project EnergyConnect will deliver cheaper power to SA households and businesses, a renewable energy investment boom along its route and, we now know, protect South Australia from another state-wide blackout.
“During State Labor’s last two years in office the average bill skyrocketed by 26 per cent or $477 per household.
“It would be grossly irresponsible for the leader of the party that delivered the state-wide blackout in 2016 to continue to undermine the project the energy experts recommend as the solution to the threat of another state-wide blackout and will reduce the price of power in South Australia.
“Labor’s Peter Malinauskas has run out of excuses for opposing this critical Investment in the state’s electricity infrastructure.”