South Australian electricity prices are set to fall in 2020, according to reports from the Australian Energy Regulator (AER) and the Australian Energy Market Operator (AEMO).
The 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 1 July 2020.
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.
South Australia Minister for Energy and Mining, Dan van Holst Pellekaan, said, “The two reports are excellent news for the price of power for South Australian households and businesses.
“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.”
Mr van Holst Pellekaan said reports followed 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.