South Australia to deregulate prices
South Australia will follow Victoria in February 2013 by fully deregulating its electricity and gas pricing.
The move is intended to reduce the burden of electricity costs on consumers and comes after calls from Prime Minister Julia Gillard during the recent Council of Australian Government (COAG) meeting. It is hoped that more retailers will enter the South Australian market and the ensuing competition will lead to lower prices.
The State’s default retailer, AGL supports the decision and will drop the Supreme Court legal action it was pursuing for an Essential Services Commission of South Australia (ESCOSA) ruling to lower wholesale prices by 9%.
Although, when Victoria fully deregulated pricing a rise in the cost of electricity was seen shortly after. While, prices are low in Victoria on aggregate, when caps on prices were removed smaller energy users saw rises in their prices.