Cheaper electricity bills confirmed from July

Bigger-than-expected cuts to electricity bills have been locked in from July for South Australian households and small businesses, under a final decision announced today by the independent Australian Energy Regulator.

The cuts of 2.8 per cent, or $63, for average households and 8.8 per cent, or $512, for small business will help ease financial pressure on consumers.

The 8.8 per cent cut for small business is the biggest percentage reduction in the nation of all categories determined by the AER.

The State Government welcomes the AER’s decision, noting the cuts were bigger than signalled by the regulator in its draft decision in March, when it flagged 2.5 per cent and 8.2 per cent cuts respectively for households and small businesses.

The larger cuts will complement the Malinauskas Government’s measures to assist vulnerable households manage the cost of living and the Australian Government’s $300 rebates to all residential accounts.

They also highlight the irresponsible fear-mongering on prices by the Opposition and proves wrong the predictions of rises of up to 20 per cent by so-called experts.

The AER independently sets a ceiling price each year – called the Default Market Offer – which provides a safety net for consumers who have not shopped around for a better deal, and acts as the comparison point for all retail contracts.

Lower wholesale costs are the main factor in the AER’s draft decision, driven by more supply from renewable energy project. There has also been an easing in the global gas market as Europe finds alternatives to Russia supply and the Australian Government’s price cap takes effect.

With the Malinauskas Labor Government’s Hydrogen Jobs Plan on track to strengthen reliability, the biggest danger to electricity prices and security is the Liberal folly of pushing for nuclear energy in Australia.

The Malinauskas Government reaffirms its support for nuclear in countries with limited opportunities to decarbonise.

However, in Australia, there is no demonstrated business appetite to invest in nuclear because there are plentiful resources to develop renewables. As confirmed this week by the nation’s leading scientific organisation, the CSIRO, nuclear is the most expensive way to generate electricity and cannot be delivered in time to avoid power shortages as ageing coal-fired stations close.

Quotes

Attributable to Tom Koutsantonis

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

It will take time to fix Australia’s vulnerability to price shocks, a legacy of the Liberal-National Coalition in Canberra’s decade-long failure to settle on an energy policy.

The complacent Marshall Liberal government bet everything on connecting SA to NSW – where wholesale prices are higher and reliability concerns are bigger and more urgent.

In contrast, 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.

South Australians should be wary about the Liberals’ marshmallow promises on nuclear - they may sound sweet but there is no substance to them, only more risk and more delay.

We have chosen a realistic path to decarbonise our economy – and today’s decision reinforces that we are on track.