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Deregulation of South Australian energy market welcomed

The federal government has welcomed a move by South Australia to deregulate electricity prices, effective from February 1, 2013.

Such a change will see energy providers become more competitive for customer business by offering varying pricing structures and services. As a result, market forces will influence how much South Australian consumers will pay - which is predicted to be less.

Federal energy minister Martin Ferguson lauded the plan, saying the recent Council of Australian Governments (COAG) meeting laid out a plan for reforming the energy sector.

He commented: "Price deregulation accompanied with strong consumer protections is essential to unlocking new opportunities for electricity consumers.

"Retail price deregulation will open up retail energy markets, providing the incentive for retailers to find creative ways to capture market share and offer consumers, not only competitive prices, but the potential for new services such as web-portals to help them track and manage their energy use."

Mr Ferguson added that by joining Victoria through deregulation, South Australian consumers will be the real winners.

He concluded by saying that this plan was the number one initiative identified in the Australian government's Energy White Paper.

Posted by Charlie Moore