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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2024-09-11 Daily Xml
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Grievance Debate

Power Prices

Mr PATTERSON (Morphett) (15:15): The last fortnight has brought more bad news about punishing power bills that South Australians are being overwhelmed by. Iconic South Australian company Drakes Supermarkets who employ over 6,000 people have seen their power bills surge from $10 million a year to $14.5 million a year: a 45 per cent increase. Another South Australian icon, Vili's, who employ 350 people and have a 56-year heritage baking pies, pasties and sausage rolls is the latest family favourite to see their power bills go up by 18 per cent compared with last year. Reluctantly, they have no option but to increase their prices.

It is not just businesses that are being punished with massive hikes to their power bills, it is also households. This was laid bare by the Essential Services Commission of South Australia energy retail offer prices report, a report that was released late on a Friday afternoon. Why would a government release such a report so late? Is it because they were hoping no-one would notice or is it because it laid bare the power price pain being felt here by South Australians?

The report showed that power bills for the average household family in SA have risen by $411 between 30 June 2023 and 30 June 2024, an unsustainable 19 per cent increase. In fact, the average household electricity bill has risen to $2,621, which is the highest residential power bill ever recorded by ESCOSA. Another record to go with this government's record on ambulance ramping.

This report is the third report released by ESCOSA under the Malinauskas Labor government and each report showed that power bills are going up. The last ESCOSA report released under the former Liberal government had the average household bill being $1,823. By 30 June 2022, this had increased to $2,041, by 30June 2023, to $2,210, and now with this latest report, the average household bill, as I said, is $2,621.

Under the Malinauskas Labor government, families have seen their power bills jump by $798: that is an increase of 44 per cent. This massive increase in household power bills is crippling for families who are also having to deal with interest rate rises and Labor's cost-of-living crisis.

These increases are not surprising because the current government had no plan at the 2022 election to ensure that electricity supply was both affordable and reliable. When you look at this 44 per cent increase, it is in stark contrast to the former Liberal government. ESCOSA previously reported that family household power bills were reduced by 19 per cent between 30 June 2018: from $2,244 down to $1,823.

All that hard work done by the former Liberal government has now been undone. We have South Australians, such as pensioner Rick Wahlheim, explaining that his power bill has been going up and it is getting tougher and tougher, with their bill rising from $900 to $1,400.

Similar to Drakes Supermarkets and Vili's, we have also heard only two weeks ago that Nippy's have had their power bills double as well. These power bill shocks are a huge concern and they are being felt by agricultural and food producers and by supermarkets where we all buy food and this could have a direct effect on everyone's grocery bills.

The ESCOSA report also showed that power bills for the average small business in SA have risen by a staggering $791 between 30 June 2023 and 30 June 2024. All up, electricity bills for the average small business are now $5,364; again another record under this government. In fact, business bills have increased by 45 per cent.

Of course, in this same fortnight, AEMO have released their Electricity Statement of Opportunities report and it again shows that South Australia is at risk of blackouts this summer. To get around this AEMO are going to have to seek and procure extra electricity from generators in the market that can then pass these costs on to consumers, which is another kick in the guts for struggling South Australians in the midst of Labor's cost-of-living crisis.

We know that South Australians are paying the highest prices for electricity in the country, yet despite this we have the lowest grid reliability. The Malinauskas Labor government must prioritise affordable and reliable energy in South Australia, instead of spending $700 million on an experimental hydrogen power plant that Labor themselves have admitted will not lower household and small business electricity bills.

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