SA power prices need federal, state government action, say businesses

Image: News Corp

South Australian businesses, including miner BHP Billiton and a number of the state’s manufacturers, have urged government action in response to high electricity prices.

The Australian reports a BHP spokeswoman as saying the state’s electricity prices were 40 per cent higher than for the eastern states, and immediate action was needed to assist in restoring competitiveness for the mining company.

BAE Systems Australia CEO Glynn Phillips told The Australian that “Security of both supply and price are important for business in managing its energy requirements.

“Today there is some uncertainty around how these challenges are being addressed both in the short and long term, and resolving them must be on both state and federal governments’ agenda.”

This week transmission company ElectraNet – which is considering four interconnector options – released a report suggestion SA was paying $500 million extra annually in electricity costs compared to other states.

Adelaide Brighton said further increases in power prices would make the burden on itself and other SA manufacturers higher.

The Australian Financial Review reports that the state’s electricity futures prices are about $100 per megawatt hour for the next three years, compared to between $55 and $65 for Victoria and NSW.