TUESDAY 20 NOVEMBER, 2012 |
Energy Retailers Refuse To Pass On SA Electricity Price Cuts
Recommendations from the Essential Services Commission of South Australia (ESCOSA)
to reduce retail electricity prices for customers on a standing contract will
reportedly not be implemented.
ESCOSA recently recommended retail electricity prices be cut by 8.1 per cent for
customers on standing contracts - a reduction of around $160 off the average
The initial reaction to the recommendations from Big Energy was predictably
At the time, AGL Chief Executive Michael
, who is also the Chairman of the Clean Energy Council, said the
not make further investments
in new South Australian power generation
capacity, including renewable energy.
6 weeks on and it's looking as though the 570,000 householders on standing
contracts won't see any relief.
the Energy Supply Association of Australia has declared the savings
will not pass on to market contracts. The Association's chief executive officer, Matthew Warren
(previously the Clean Energy Council's CEO), said ESCOSA should review its
methodology; which was heavily criticised by Big Energy players including AGL, Origin, Energy Australia and Simply Energy
However, consumer watchdog association Consumer SA believes if electricity
retailers refuse to pass on the recommended reduction, the South Australian
government enforce the decrease to all contracts.
Whether on a standing or market contract, South Australian households have
increasingly felt the pinch of rapidly increasing electricity prices for the
last few years. Pain at the electricity meter has driven many thousands of
households to install solar - but even that option will become more expensive
soon after last Friday's announcement the Solar Credits multiplier would
be abolished 6 months early
As with the rest of Australia, South Australian households who hadn't already
placed an order for a solar
only have until December 31 to not only acquire one but have it
installed in order to benefit from the current higher subsidy - and given the
rush triggered by the announcement, installation bookings will be filling fast.
Other news for Tuesday 20 November, 2012
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