The rising cost of utilities over the past decade has significantly increased the cost of doing business in South Australia, particularly for manufacturers and agri-businesses which dominate SA’s export earnings.

The Government’s move to impose cost reflective electricity tariffs on all small consumers must proceed with caution. Although such tariffs would be phased in, it is still unclear as to whether or not the system benefits of these tariffs being imposed upon small consumers, including small business, outweigh the transition costs such as smart meters. Notwithstanding, Business SA does not want larger electricity consumer businesses to continue having to cross-subsidise residential air-conditioning use.

Increased volatility in the South Australian wholesale electricity market following Atlinta’s decision to shut down the Northern Power Stations has significantly increased forward electricity prices. Business SA will continue to highlight the need for South Australia to maintain an adequate level of conventional base-load electricity supply which cannot yet be replaced by intermittent renewables such as wind power.

For further information please contact: Andrew McKenna at andrewm@business-sa.com or (08) 8300 0000.

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