Ministerial Statement

Electricity Prices

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:02): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: Recent announcements by the major electricity retailers in South Australia will see dramatic increases in electricity accounts for households and small businesses, as of July 2016. Retailers have indicated that the price rise was mainly driven by the cost and availability of coal and gas supply for electricity generation as well as the changing mix of generation output.

For a typical customer consuming five megawatt hours, AGL has announced an increase by an average of $228 per annum. Origin Energy subsequently announced that it was increasing prices by an average of $117 per annum. EnergyAustralia followed by announcing that it would increase bills by an average of $261 per annum.

Given the significant level of community concern with the price increases, and the divergent views as to the cost drivers in the wholesale energy market as well as whether the scale of the increases can be justified, there is a strong case to seek independent advice on the recent retail price increases. I advise the house that, this morning, I have written to Dr Lynne Williams, Acting Chair of the Essential Services Commission of South Australia, seeking advice on whether or not the recently announced changes in electricity retail prices in South Australia are justifiable, having regard to relevant market conditions.

ESCOSA has a great deal of experience with the energy industry and its act provides significant information gathering powers that can assist in establishing the factual basis for the recent price increases. A report is due back before the end of October, and I look forward to updating the house on its findings.