State Liberals support business push for lower power prices


The State Liberals are throwing their support behind South Australian businesses seeking access to lower electricity prices through a joint purchasing group.

Shadow Minister for Energy and Mining Dan van Holst Pellekaan has today written to the Australian Competition and Consumer Commission (ACCC) to support the application of the South Australian Chamber of Mines and Energy (SACOME) and several SA companies to establish a joint electricity purchasing group.

“South Australian employers are being smashed by the highest electricity costs in the nation, whilst having to put up with the least reliable supply, so any effort by businesses to band together to access lower power prices should be supported,” said Shadow Minister for Energy and Mining Dan van Holst Pellekaan.

“Ultimately, the ACCC has to give permission to SACOME and these SA businesses to establish this group and allow them to tender, negotiate and contract for the supply of their electricity requirements.

“I’m advised by SACOME that the structure of the combined offer is such that one or more electricity suppliers may come to an agreement to supply any or all of the participating members in the buying group.

“SACOME has also advised that different agreements may be reached between individual electricity suppliers and participating members in the group at different prices, for different periods of time, and for all or part of the participating member’s electricity demand.

“Businesses are crying out for lower electricity prices to help them lower the costs of doing business in order to succeed.

“I’m satisfied that this application to the ACCC will not reduce competition in the electricity market and will not be an abuse of market power.”