Electricity prices raise by more than 20 per cent across SA

Residential customers on standard retail plans will see electricity price increases of 20.8 per cent to 23.9pc without controlled load, depending on their region, and between 19.6pc to 24.9pc with controlled load

The DMO also reported small business customers were facing increases of 14.7pc to 28.9pc, depending on their region but Strathalbyn Corner Bakery co-owner Brendan McDonald said their electricity rate was increased by 60pc.

"We were quoted by Alinta that our electricity would go up by approximately 60pc - about $14,000 a year," he said.

"We're not in a position where we want to put our prices up.

"When you put prices up, you get resistance to that - people don't like paying higher prices, and I don't blame him for that.

"I don't like paying high prices either, but as a business you don't have an option."

He said they were shopping around for a better electricity price but could not get renewable energy.

"We're in a state that has the most renewable electricity of any other state in Australia and we've also got the highest power prices," he said.

"Due to renting the building for the bakery we are not permitted to install solar."

Greg Bockelberg, Victor Harbor, said he went off grid for a few reasons, which included the cost to connect power to his property costing just as much as a "very good off-grid system".

"It's got 36 solar panels on the roof and eight batteries and powers the whole house," he said.

"We have a 8KVA Honda generator that sits out the back of the shed that will automatically start should the batteries need help for a few days during winter.

"It's not cheap, but over the course of time with power having just gone up 25pc, we are really confident that we've made the right decision."

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He said they could not be happier with the system because it was "environmentally greener".

A department for energy and mining spokesperson said consumers were seeing the result of the private market applying to customers' bills and the impact of the global energy shock caused by Russia's invasion of Ukraine.

"The lost decade on energy policy by the Liberal-led Coalition in Canberra has left Australia more vulnerable to these forces," they said.

"It has been worsened by the historical decision to sell ETSA, the complacency of the former Liberal government in SA and the decreasing reliability of coal-fired power stations interstate.

"In a private market, the retailers set the prices, although companies must follow the standard consumer-protection laws as well as energy market rules.

"The ACCC and the Australian Energy Regulator monitor market behaviour and enforce the laws and rules."

They said renewables put downward pressure on wholesale prices, typically bidding into the market at low prices.

"(But), because the National Electricity Market works as a reverse auction, the final prices are often set by fossil fuel generators," they said.

"The latest AEMO quarterly report shows that coal set the price in SA 37pc of the time, gas 11pc, hydro 27pc, wind 15pc and grid-scale solar 6pc.

"SA has historically had high prices relative to other states because of our low population density.

"We pay for a network that stretches from the Victorian border to Ceduna.

"There are fewer customers per kilometre in SA than any other state in the National Electricity Market and therefore the costs per customer are higher."

The DEM spokesperson said SA uses a "postage-stamp" pricing model - that is all of the state pay the same per unit of energy, even though it costs more to deliver energy to a regional customer than to one in the metropolitan area.

"The (state) government has committed $127.2 million for the National Energy Bill Relief Plan, which will be matched by the Commonwealth dollar for dollar," they said.

"Households eligible under the plan will receive rebates of $500, while eligible small businesses will receive rebates of $650.

"The one-off relief, provided on 2023-24 energy bills, is on top of the existing state government energy concession worth up to $263.15 in 2023-24.

"Eligible households will automatically qualify for the rebate, with the one-off rebate also extended to Family Tax Benefit recipients."

They said the number of SA households eligible for relief is expected to double, from 210,000 to approximately 420,000.

"Those households receiving both the state government concession and one-off rebate will save up to $763.15 in 2023-24," they said.