The State Liberals say the Australian Energy Regulator (AER) decision to reduce the regulated price of distributing electricity in South Australia will be overwhelmed by rising generation costs, meaning households and small businesses will still face increased electricity bills in the future.

“The closure of the Port Augusta power stations will reduce total generation supply in South Australia by 15 per cent which will drive up the spot market price of electricity and in turn household bills,” said Shadow Minister for Mineral Resources and Energy Dan van Holst Pellekaan.

Household electricity bills are comprised of generation, transmission, distribution and retail costs.

“The fact electricity prices are set to rise in the future highlights the critical need for the Weatherill Government to deliver tax relief to South Australian households and businesses,” said Dan van Holst Pellekaan.

“South Australian households and businesses have been hit by the triple whammy of massive increases to the ESL tax, the highest water prices in the nation and crippling electricity prices.

“The combined impact of these punishing imposts has dampened demand, suppressed economic activity and driven up unemployment.

“I was hoping that the AER’s original determination would have eased the financial burden on households and small businesses which in turn would have stimulated increased economic activity in the local economy.

“Unfortunately the sharp reduction in the amount that households will save from the AER decision and the rise in the cost of generation will wipeout any stimulatory impact the AER’s decision will have.”