Labor policy generates higher electricity prices

The State Labor Government’s headlong rush into renewable energy has precipitated South Australia’s energy crisis that will drive up the price of electricity for households and business and drive down the number of jobs created by our ailing economy. 

“The State Labor Government’s energy policies have created a dangerous imbalance in South Australia’s electricity supply system and this will drive up the price of electricity,” said Deputy State Liberal Leader Vickie Chapman.

“Before the closure of the Port Augusta power stations South Australia has endured several episodes of sharply rising electricity prices with prices soaring above $2000/MWh and at times hitting the $13,800/MWh market limit.

“The closure of the Port Augusta power stations will reduce total generation supply in South Australia by 15 per cent which will further drive up the spot market price of electricity and in turn household and business power bills.

“Not satisfied with saddling South Australia with high electricity prices Premier Weatherill is promising to push the price up even further with his plans for 50 per cent of electricity production to be generated by renewable energy by 2025.

“South Australian households have been hit by the triple whammy of massive increases to the ESL tax, the highest water prices in the nation and crippling electricity prices.

“The coming surge in the price of electricity prices will also have a detrimental impact on South Australia’s disastrous unemployment rate.”

The Financial Review reports today that Nyrstar faces prices of $87 to $90 per megawatt-hour for electricity delivered from 2016 to 2018, compared with the $37-to-$41/MWh that the Victorian industry pays for the same contracts.

“Rapidly increases prices will also cruel the State Government’s proposed Industrial Food Park in northern Adelaide,” said Ms Chapman.

“High electricity prices undermine the viability of industrial food manufacturing at the expense of South Australia’s unemployed.”