South Australian wholesale electricity prices are cheaper than Victoria and New South Wales for the first time in seven years.
This cheaper wholesale electricity is translating 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 for the 2019-20 financial year.
The fall in prices in South Australia means Origin customers will save a further $127 dollars off their electricity bills in 2020, AGL will deliver another $62 savings, and customers on default contracts will save $85.
This is in addition to a three 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.
SA Minister for Energy and Mining, Dan van Holst Pellekaan, said driving down the cost of living lay at the heart of the SA Government’s policy agenda.
“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,” Mr van Holst Pellekaan said.
“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.”
Mr van Holst Pellekaan said this achievement proved it was possible to both reduce the price of electricity and the state’s impact upon the environment simultaneously.
The SA Government has committed to driving a transition to net-100 per cent 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 Mr van Holst Pellekaan.
“Project EnergyConnect will reduce the average South Australian residential electricity bill by $66 and the typical small business bill by $132.
“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.”
