Full Federal Court dismisses push by SA Power Networks to increase power bills

The Federal Court has dismissed an appeal by SA Power Networks to charge more for electricity distribution, which would have increased bills for all South Australians.

The ruling was made this morning in Adelaide and upholds the previous determination against SA Power Networks made by the Australian Competition Tribunal, following appeals by the State Government on behalf of households and businesses.

In dismissing the appeal, the Federal Court rejected each of the arguments put forward by SA Power Networks, including the cost of labour and return on debt, and ordered the company to pay costs.

The decision means that SA Power Networks will be able to raise $700 million less over the period to 2020 than they originally sought.

Energy Minister Tom Koutsantonis today said the Federal Court decision was a win for South Australians against higher power bills. He urged SA Power Networks to accept this latest determination and not appeal the matter to the High Court.

Background

SAPN is the monopoly operator of the South Australian electricity distribution network of poles, wires and substations.

The network was sold to the monopoly by the previous Liberal Government when they privatised ETSA in 1999.

In October 2015 the AER made a decision on the SAPN revenue allocation for 2015-2020, providing a total revenue allowance of $3.84 billion, compared to the $4.53 billion sought by SAPN in its revised proposal.

SAPN then applied to the Australian Competition Tribunal for a merit review of the AER’s determination.

Energy Minister Tom Koutsantonis intervened in the process to advocate for the affirmation of AER’s decision.

The Australian Competition Tribunal in October 2016 determined against SAPN’s appeal, with SAPN then appealing the determination to the Full Federal Court.

SA Power Networks’ costs represent over 30 per cent of an average consumer’s annual electricity bill.

Media Contact: David Russell 0434 307 012

www.premier.sa.gov.au Twitter: @sa_press_sec

Quotes attributable to Energy Minister Tom Koutsantonis

This is a huge win for South Australians households and businesses against higher power bills.

What SAPN was seeking to do was to charge hundreds of millions of dollars more for the use of poles and wires, which would have been added straight to the bill of every South Australian.

Steven Marshall’s Liberals sold ETSA to monopolies and SA Power Networks has been attempting to do what all monopolies do – extract as much money as possible from customers.

Labor will always stand up for South Australians and that’s why as Minister I intervened in the process to advocate on behalf of households and businesses.

Jobs are our number one priority and that means doing everything we can to lower power bills. Our $550 million energy plan is adding competition to the market and putting downward pressure on power prices, and today we have had a significant win in the Federal Court against increased charges.

We have now had determinations from the Australian Energy Regulator, the Australian Competition Tribunal and the Federal Court, which have all found that the attempts by SA Power Networks to charge South Australians more are unjustified. It’s time they accept those decisions and I urge them not to appeal today’s ruling to the High Court.