Electricity Prices Modelling

In reply to the Hon. A. KOUTSANTONIS (West Torrens) (30 July 2021). (Estimates Committee A)

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining): I have been advised:

The Australian Energy Regulator has estimated the impact of delivering the project is that the average residential electricity bill in South Australia will increase by $6 in 2022-23 and $17 per year over the remainder of the regulatory period.

ACIL Allen modelled the project impact on electricity bills net of the cost of the interconnector itself. The ACIL Allen modelling, which is publicly available on the Australian Energy Regulator's website, forecast that on average in nominal terms from 2024 to 2030, the retail bill of a representative household would reduce by $100 per annum.

The modelling was based on the physical asset being in place from 1 January 2024, reduced capacity for network testing for six months and additional transfer capacity introduced in stages from 1 January 2024 and 1 July 2024.