Friday, 5 June 2020
The South Australian Business Chamber has today welcomed the AER’s final decision on SA Power Networks 2020 – 25 regulatory proposal, the largest single component of power prices, which will see distribution prices for small businesses fall by 1.8 per cent on 1 July.
The peak business industry body also welcomes the AER’s change of heart on SA Power Networks proposal to spend more to improve low reliability feeders across regional South Australia, particularly in poorly served regions like the Eyre Peninsula.
The South Australian Business Chamber Director of Policy and Advocacy, Andrew McKenna, said the decision would provide small businesses with relief at a time when they need it most.
“As the peak body representing South Australian businesses in SA Power Networks’ regulatory determination process, the South Australian Business Chamber has welcomed a 1.8 per cent price cut for electricity distribution to become effective on 1 July,” said Mr McKenna.
“Now more than ever, businesses need relief on utility prices, and the South Australian Business Chamber is pleased to see electricity distribution costs will not add further to electricity bills over coming years.
“The South Australian Business Chamber had lobbied the AER to accept a modest capital expenditure program SA Power Networks proposed to improve reliability outcomes for regional areas, and we welcome their change of heart to approve this spending in today’s decision.
“The South Australian Business Chamber understands how important electricity reliability is across regional South Australia, particularly for businesses in the tourism sector which are trying to provide a world class experience, and today’s decision should reduce annual outage times by three hours on average for the worst served customers.
“Now that the AER’s decision puts the brake on any further increases in power costs, the South Australian Business Chamber looks forward to ESCOSA’s pending decision on SA Water’s prices for the next four years, and the State Government implementing the findings of the Independent Water Price Inquiry into SA Water’s inflated asset values.
“The South Australian Business Chamber supports the AER providing SA Power Networks sufficient scope to manage the growing challenge of minimum demand on the electricity system in the middle of the day as a result of increasing solar exports.”
