Future power just got more expensive

The State Liberals have released Australian Stock Exchange (ASX) base future contracts data showing that Jay Weatherill’s patch-up job on South Australia’s fragile electricity network is pushing the price of electricity up even further.

In the two weeks since Jay Weatherill released his $550 million taxpayer funded plan to stabilise South Australia’s fragile electricity system the base future contract price of electricity has jumped by 7.7 per cent.

“In another jolt for South Australian electricity consumers Jay Weatherill’s plan to fix the mess he has created is going to force-up the price of electricity,” said State Liberal Leader Steven Marshall.

“Some future electricity contracts have jumped by more than 30 per cent and contacts for as far out as March 2020 have jumped by 17.6 per cent.

“These price rises are another damning blow to the Premier’s credibility after he told South Australians his power plan would reduce bills.” (Adelaidenow 14 March 2017).

As Treasurer Koutsantonis noted: The best forecast we have, of course, is from the ASX forward prices and the OTC prices. (Hansard: 2017-02-14)

“It takes a special type of economic incompetence to spend half a billion dollars of taxpayers money only to increase the price of electricity,” said Steven Marshall.

“Once again this highlights the stupidity of the Weatherill Government’s decision to force the closure of the Northern Power Station.

“After the Northern Power Station closed the average South Australian household copped a 10 per cent increase in their electricity bills.

“Those surging electricity prices increase are likely to be replicated again this year and in future years.”

“Jay Weatherill needs to come clean as to exactly what it would have cost his Government to keep the Northern Power Station operating.

“Under the Weatherill Government South Australia has highest rate of electricity disconnections, the most customers on hardship programs and the highest average electricity debt in the nation.”