Energy Transition White Paper

SACOME calls for release of the South Australian Government’s Energy Transition White Paper as a priority action.

SACOME continues to champion the importance of strategic and coordinated energy policy development on behalf of its members.

SACOME calls for release of the Energy Transition White Paper as a priority action, recognising that it is intended by the South Australian Government to be a ‘foundational economic document for the remainder of the first half of the 21st Century’.

SACOME has previously observed that South Australia’s experience is one of a ‘disorderly’ energy transition where energy policy goals have been set and pursued in relative isolation, resulting in unintended consequences elsewhere in the energy system with associated unintended impacts on both consumers and the State’s economy. 2

SACOME expresses concern at the continuing number of market intervention mechanisms implemented by government and statutory authorities used as expensive, reactive measures to manage an unstable system.

SACOME’s research has demonstrated that direction charges, largely borne by commercial and industrial customers, increased from $6.15 million in Q4 2019 to $19.94 million in Q4 2022, a 224% increase.

An array of regulatory, pass-through and market intervention charges are being passed on to businesses - and inevitably consumers - with large industrial customers reporting that market intervention costs now account for approximately 20-30% of their electricity bills.

SACOME cautions that continuing to introduce reactive measures funded by new levies on the South Australian customer base risks undermining business viability and the investment attractiveness of South Australia as a jurisdiction.

We reiterate in the strongest terms that strategic energy policy reform continues to be an urgent priority, particularly at a time where South Australia’s electricity prices remain the highest in the nation.

2. https://www.sacome.org.au/uploads/1/1/3/2/113283509/sacome_energy_transition_roadmap_2021_final_22.02.22.pdf (at pg.3)