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Latest warning on electricity prices

Deloitte Access Economics has delivered yet another warning that South Australia faces uncertain electricity supply and higher prices as a result of the Weatherill Government’s foolish approval of too many wind farms.

Deloittes writes “…electricity users (particularly businesses) may face shortages in supply at a time when the electricity network is adapting to a more variable mix of electricity generation...”

In February, the Australian Energy Market Operator (AEMO) released data showing surging electricity prices in South Australia in the next two years.

AEMO has also warned South Australia’s significant renewable electricity has increased instability in the system and would require investment in large infrastructure to mitigate the risk of blackouts.

“The Weatherill Government has been repeatedly warned by Deloitte Access Economics, AEMO and the Liberal Opposition of the problem it has created yet it simply refuses to acknowledge the gravity of the situation,” said Shadow Minister for Mineral Resources and Energy Dan van Holst Pellekaan.

“The Weatherill Government’s overzealous approval of new wind farms has destabilised the energy market, driven base load providers out of the market and pushed prices to consumers up unnecessarily.

“All South Australians will be being paying the price of the Weatherill Government’s failed energy policies with the most expensive power in the National Electricity Market (NEM).

“The jolt in electricity prices in South Australia will push future base electricity prices in South Australia 34 per cent higher than the national average and 69 per cent higher than Victoria.

“The Weatherill Government was repeatedly warned that the closure of the Port Augusta power stations would reduce base load supply and drive up the price of electricity.

“Higher electricity prices in South Australia compared to the rest of the NEM is particularly bad news in the midst of our jobs crisis.

“Businesses looking to invest in new job creating opportunities in Australia shun high cost jurisdictions.

“The fact electricity prices are set to rise in the future highlights the critical need for the Weatherill Government to deliver tax relief to South Australian households and businesses.”