Welcome relief after the hikes of the past few years....
Household electricity bills to be slashed by about $200
- DAVID NANKERVIS
- THE ADVERTISER
- APRIL 30, 2015 1:32PM
Households should get some electricity bill relief from next financial year.
HOUSEHOLD electricity bills will be slashed by almost $200 next financial year.
The energy regulator today decided to cut network charges, which it says will reduce bills by almost 10 per cent on average in 2015/16.The decision means SA Power Networks (formerly ETSA) will receive significantly less revenue than it asked for from the regulator.Welfare and business groups have welcomed this morning’s Australian Energy Regulator decision, which provides significant relief for electricity customers after years of soaring power prices.The regulator said it expects “average annual electricity bills for residential customers to reduce by $197 (or 9.8 per cent) in 2015—16, followed by more stable bills over the rest of the period covered by this decision’’.“For small business customers, we expect reductions of $381 (or 9.8 per cent) in 2015-16 and relatively stable bills over the rest of the period covered by this decision.’’In its decision on how much SA Power Networks can charge for electricity supply, the regulator said it will allow the monopoly company to recover “32.3 per cent less revenue’’ than it proposed.Welfare agency Uniting Communities said the savings generated by the regulator’s decision were well justified.“This reduction is reasonable and about the amount customers should have been expecting,’’ Uniting communities spokesman Mark Henley said.“This reduction is not so much about expenditure but reflects the dramatic decrease in the cost of borrowing.’’Business SA said the cut to electricity bills was welcome, given they are a “major cost for growth sectors including manufacturing and irrigated agriculture.’’Welcoming the decision, Treasurer Tom Koutsantonis said the State Government had been particularly concerned with the large increase in SA Power Network’s proposed capital expenditure.“SAPN had proposed $2.48 billion for capital expenditure with the AER determining this should be significantly lowered to $1.68 billion – a reduction of $800 million,” he said.Retailers are expected to start passing savings on to consumers after July 1, 2015, he said.