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Energy regulator rejects supply cost cut

Source: ABC, April 8, 2013


South Australia's energy regulator has rejected a proposal to lower the cost of distributing power.

The state's high voltage power distributor ElectraNet asked the Essential Services Commission last November to change the rules governing its operations.

The company argued that amending the Electricity Transmission Code would significantly reduce its costs.

In a draft ruling, the Commission has agreed to some minor changes but wants further information ahead of any fundamental reform.

Adam Wilson from the Commission says ElectraNet wants to lower some service standards.

He says while some minor amendments should be made, fundamental changes cannot be supported without further information about the effect on consumers.

"It really does need some more certainty that any benefits will be captured by customers and won't be captured by the business," he said.

"Any cost savings need to be passed through to customers and customers really need to be confident that any diminution in reliability standards are appropriate."

ElectraNet's transmission charges only account for a small percentage of total electricity costs.