The Public Interest Advocacy Centre and South Australian Council of Social Service have
welcomed today’s decision by the Australian Competition Tribunal in relation to South Australian
electricity network prices.
Earlier today the Australian Competition Tribunal upheld the October 2015 determination of the
Australian Electricity Regulator (AER) in relation to electricity network revenue, rejecting
arguments by the SA Power Networks that, if accepted, would have resulted in higher prices for
consumers.
PIAC represented SACOSS in its legal challenge to the AER’s decision, arguing for lower prices.
‘South Australian households should be very pleased with this decision. It will save households
approximately $140 per year on their electricity bills,’ said PIAC CEO Jonathon Hunyor.
‘The Tribunal has rejected the Networks’ attempt to recover $250 million more from South
Australian consumers.
‘Significantly, this is the first time consumers have been heard in the price-determination process in
SA. Prior to reforms to the National Electricity Law in 2013, only the electricity networks were able
to contest the AER’s determinations.
‘We were very pleased to see the Tribunal give detailed consideration to the submissions made by
consumer interest groups during the Tribunal’s consultation process. It is vital that consumers are
heard when it comes to utility pricing,’ said Jonathon Hunyor.
SACOSS CEO Ross Womersley said: ‘Consumer groups from around the state have been active
for three years in helping to achieve this result. A collection of business and community groups has
maintained an active presence during the regulatory decision making process and the Tribunal’s
review. This win is significantly thanks to this state-wide effort and we congratulate our colleagues
in joining with us to achieve this win.’
‘We recognise that this win comes at a time when prices for South Australian consumers are still
going up. However, this win underscores the importance of a strong regulator and active consumer
voices across the value chain. We will continue to use our resources to seek further price relief for
South Australians,’ Mr Womersley said.
Since May 2015, PIAC has also been locked in a legal battle in relation to the NSW electricity
network pricing determinations by the AER. PIAC is arguing for lower prices for NSW consumers.
The result of the Australian Competition Tribunal’s February 2016 decision in relation to review of
the AER’s NSW determinations was less favourable for consumers. It did not decide on some of
PIAC’s arguments, and instead it accepted the network businesses’ position that they should be
allowed to collect even more money from consumers.
PIAC is currently representing NSW consumers in the Full Federal Court’s review of this decision.
PIAC & SACOSS both acknowledge the importance of funding from Energy Consumers Australia
in helping consumers to participate in the review process.