Two separate reports by electricity regulators show electricity prices in South Australia are going to fall further for households and businesses this year.
The Australian Energy Regulator (AER) has determined that the default market offer for electricity, which replaced “standing offers” as the backstop for those who are not on market contracts, will be cut by between 4.4 per cent and 7.1 per cent for households and small businesses respectively.
As a result of AER’s ruling more than 75,000 South Australian households and small businesses are set to receive significant cuts in their electricity bills from July 1st this year.
Households on the default market offer will save $85 per annum on their electricity bills, households with controlled loads will save $138 a year and small businesses will pocket an average savings of $691 per annum.
The Australian Energy Market Operator’s latest report shows South Australians on market contracts are also in line for another cut to the price of electricity.
From November, ASX futures prices for 2020 and 2021 contracts have shown significant declines, with South Australia’s calendar year 2020 (Cal20) swaps reducing by $17/MWh (17%), (AEMO 2020 | Quarterly Energy Dynamics Q4 2019)
“The two reports are excellent news for the price of power for South Australian households and businesses,” said Minister for Energy and Mining Dan van Holst Pellekaan.
“Households and businesses on standing contracts will automatically receive a saving of at least 4.4 per cent whilst everyone else will benefit from a fall in the wholesale cost of electricity.
“The Marshall Liberal Government’s energy policies have halted South Australia’s runaway electricity prices and are bringing relief to hundreds of thousands South Australian households and businesses.
“Today’s good news is in addition to a 3 percent or $62 fall in the average annual cost of electricity for households on market contracts during 2018-19 according to the SA Regulator, ESCOSA.
“During State Labor’s last two years in office the average bill skyrocketed by 26 per cent or $477 per household and now they are decreasing.
“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.
“Yesterday when outlining the Government’s agenda for the next two years, Premier Marshall announced an aspiration to reduce emissions by more than 50% by 2030 from 2005 levels, potentially contributing twice as much to the national target as other states.
“With the SA-NSW Interconnector, Home Battery Scheme, Grid Scale Storage Fund and demand management, the Marshall Government is leading the nation in emissions reduction whilst also reducing electricity 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.
“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.
“Labor’s opposition to the Home Battery Scheme and interconnection with New South Wales puts them at odds with the best interests of South Australian households and businesses, as well as industry experts.”