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ESCOSA proposal may reduce electricity prices

A new Essential Services Commission of South Australia (ESCOSA) proposal could reduce electricity prices for residents in South Australia as early as next year.

This is the main suggestion put forward by the ESCOSA in their draft discussion paper on wholesale electricity costs released yesterday (October 2).

Findings suggest that a quarter of electricity consumers in SA may be eligible to pay a lower rate for their energy usage.

The scheme aims to reduce the cost of power to households and small businesses and is focused on those groups on AGL SA electricity contracts.

The proposal is still in its discussion stage and there will be an opportunity for the public to have their say on the suggested changes.

A decision on the proposal is expected to be made in early December.

In the instance that these changes are permitted - the modification to the pricing structure for customers would take effect on January 1 2013.

ESCOSA chief executive officer Paul Kerin said: "ESCOSA proposes an 8.1 per cent standing contract price reduction, which we anticipate will reduce an average household's bill around $160 a year."

Posted by Charlie Moore