South Australian Business News

SA Power Networks' 2025-30 Draft Regulatory Proposal: What it means for businesses

Yarik Turianskyi
Thursday, August 17th 2023

SA Power Networks (SAPN) which runs South Australia’s distribution network, including poles, wires and substations, has recently launched its 2025 – 30 Draft Regulatory Proposal. 

The South Australian Business Chamber participated in extensive stakeholder engagement in 2022 as part of the 2025 – 30 Regulatory Reset Proposal, spending in excess of 150 hours engaging in the process to represent the interests of the business community, and advocating for a balance between network reliability and cost efficiency.

The good news is that as per the 2025 – 30 Proposal, average distribution bills (which represent about one-third of an electricity bill) will remain flat. 

In addition there are a number of proposed changes we wanted to let the South Australian Business Chamber members know about.

One of these is SAPN’s definition of a Small Business customer. Small Business customers are defined by South Australian legislation as consuming less than 160 MWh per annum. However, SAPN found that 94% of Small Business customers use far less electricity, between 0 – 40MWh each year. SAPN therefore proposes defining a Small Business customer tariff subcategory as consuming 0 – 40MWh annually, and Medium Business customers as consuming 40 – 160 MWh.

Under this Proposal, in 2025 – 30 Small Business customers would have the same daily supply charge as Residential customers, given that their distribution network usage is similar. Medium Business customers, on the other hand, would have a higher daily supply charge but also a lower-priced usage charge, in recognition increased consumption volumes. 

In regards to the tariff structures, there would be no changes for Small Businesses, which would remain on default interval meter tariff structures. Medium Businesses would be on the demand tariff structure by default, with an option to opt out if their demand is less than 120kVA, and switch to a Small Business time of use tariff. 

However, under the proposal there would be a new export tariff from 1 July 2025 for Small Business customers with small embedded generation systems (such as solar systems), defined as less than 30kW. These tariffs would be used to recover the costs associated with alleviating forecast congestion in SAPN’s low voltage network due to high levels of energy exports. Non-exporting customers would not be charged the new tariff. 

If you want to find out more about SAPN’s Proposal for 2025 – 30, including export tariffs and electric vehicle charging, you can download SAPN’s Draft Proposal Part A and Draft Proposal Part B.

SAPN would welcome feedback, which can be submitted as follows: 

SA Power Networks 2025 – 30 Regulatory Proposal
Attention: Dan Popping, Head Strategic Engagement
GPO Box 77
Adelaide SA 5001

Alternatively, you can let the South Australian Business Chamber’s Policy & Advocacy Team know on 08 8300 0000 or via policy@​business-​sa.​com and we will pass on your feedback to SAPN. 

Author

Yarik Turianskyi

Senior Policy Advisor
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