The next time an electricity distributor seeks to crank up prices, it’s worth noting their after tax profit per customer.
Foreign owned SA Power Networks is the only game in town in South Australia – it is the state’s sole electricity distributor; meaning it is responsible for the “poles and wires” aspect of electricity transmission.
According to AdelaideNow, the company is raking in after-tax profits of $420 a year from each customer.
AdelaideNow states charges for SA Power Networks services are around 40 per cent of the average $1911 household electricity bill.
But the good news (for SA Power Networks) doesn’t end there. It appears it has asked the Federal Government for two more electricity price rises.
The news won’t be well received by South Australians; who pay some of the highest electricity rates in Australia. Adding to the essential services price pain is an increase in water prices for 2014-15 of 2.9 per cent and sewerage charge increases of 2.9 to 3.4 per cent.
Given the cost of power, it’s little wonder solar power systems have been so popular in the state. According to solar provider Energy Matters, a 5kW solar panel system installed in Adelaide can return a financial benefit of between $1,458 – $2,389 annually.
As home energy storage systems become more affordable, it’s predicted that many solar households will take things a step further and ditch the grid altogether.
Energy Matters’ Australian Solar Index shows solar to be one of the best investments Adelaide business and home owners can make; offering an estimated 19.1% internal rate of return. South Australians can make the switch to solar panels via Energy Matters for zero dollars up-front under the company’s Save As You Go payment plan.
The case for going solar now has become even stronger given fears the Renewable Energy Target review may recommend slashing or abolishing support for the purchase of small scale solar power systems.