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| Sandra Kanck Deputy Leader Australian Democrats Member of the Legislative Council |
News Release |
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| Sandra Kanck Deputy Leader Australian Democrats Member of the Legislative Council |
News Release |
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Friday 30th June 2000
ELECTRICITY PRICES IN SA SET TO RISE?
Further doubt has arisen as to the value of consultants in the electricity privatisation with the news that the Australian Competition and Consumer Commission has issued a draft determination permitting an increase in the maximum price of electricity by 400 per cent, to $20,000 per mega watt hour. The news is not good for electricity consumers or taxpayers in South Australia, say the Australian Democrats.
"Due to a very tight supply and demand situation in South Australia there is every likelihood that a $20,000 pool price in South Australia will be a regular feature of our electricity market this summer," says Sandra Kanck, Democrats Deputy Leader.
"That means businesses buying electricity from the pool face the possibility of being badly stung in the event of very high demand or the breakdown of one of the generators.
"Small consumers are temporarily protected from these ridiculous prices but when all consumers are contestable everyone will be vulnerable.
"The real winners from this decision are the owners of the recently privatised generators.
"National Power has just purchased South Australia’s peak load-generators, Synergen, for a song at just $39 million. Synergen returned $11.8 million in profits last year. It only operates when demand is high and will now be in the position to quadruple its profits when demand outstrips supply. They’ve effectively been given a licence to print money.
"This casts further doubt on the quality of the advice the State Government has received from its privatisation advisers. They must have known this price increase was impending, so why did they recommend that Synergen be sold at such a giveaway price?"
FOR FURTHER INFORMATION: Sandra Kanck
