South Australia has the most expensive electricity in the country because of privatisation. Since privatisation in 1999 electricity prices in South Australian have increased 216 percent. In comparison the cost of housing in Adelaide has increased by 99 percent in the same period. In other words electricity prices have grown more than twice as fast as the cost of housing.
In the last two years South Australia’s private transmission company Electranet has made $209 million in profits while the private distribution company SA Power Networks has made $454 million. That’s over $600 million that comes from ripping off South Australians on their energy bills.
Essential services like electricity should not be in private hands and run for profit. The Greens will save the average South Australian $409 on their yearly energy bills by reversing privatisation.
The Greens will:
Revive the Electricity Trust of South Australia as the sole public retailer and network provider for South Australia’s electricity system
Phase out private electricity retailers over two years
Bring South Australia’s electricity distribution and transmission network back into public hands and under the control of ETSA
Establish ETSA as a statutory authority with a board comprised of at least two worker and consumer representatives
Direct ETSA to run at cost, eliminating profit from the system and cutting the average bill by $409
$409 saving on your bill
By reversing the privatisation of South Australia’s electricity system the Greens will be able to redistribute private profit back towards cheaper electricity bills. That equates to a 26 percent reduction in the average South Australian’s electricity bill.
Reverse privatisation of our electricity network
The Greens will bring South Australia’s electricity network back into public hands by compulsorily acquiring the distribution and transmission network off Power Network SA and ElectraNet for $4.5 billion.
The Australian Energy Regulator makes periodic determinations on the value of each state’s distribution and transmission network known as the Regulated Asset Base (RAB). Under the most recent determination the total value of ElectraNet’s transmission network is $2.7 billion while SA Power Network’ distribution network is $4.5
billion. However, these are both overvalued estimations. A report by ex Powerlink executive Hugh Grant found that ElectraNet’s RAB was overvalued by 50% while SA Power Network’s RAB was overvalued by 29 percent. Writing down the RAB of the distribution and transmission network this will further reduce South Australians’ electricity bills.
Since acquisition ElectraNet and SA Power Network have already made billions of dollars in profit.
Phase out private retailers
Private electricity retailers are parasites on our electricity system, adding a mark-up on our bills despite not producing any electricity. According to the ACCC $50 a year of our electricity bills are literally just paying advertising and marketing costs for electricity retailers.
The Greens will phase out all private electricity retailers over two years, with billing services taken over by ETSA – similar to pre-privatisation. This will save South Australians at least $50 a year on their bills alone.