South Australia now has the most expensive electricity in the world

SOUTH Australia now has the most expensive electricity in the world providing a powerful incentive for households to install solar systems.

Carbon and Energy Markets director Bruce Mountain crunched the figures and found South Australia’s power is three times more expensive than in the US and 50 per cent higher than the UK.

He told news.com.au he compared prices in South Australia and other parts of Australia to countries in Europe.

“I know the most expensive prices are in Europe, US prices are much lower and the only other contender is Japan but I know prices are higher in Europe,” he said.

Dr Mountain said he had previously done more comprehensive audits of prices around the world including the US. His analysis includes consideration of gas and electricity prices for the average customer.

It found prices in South Australia were more expensive than in places like Denmark, Germany, Italy, Ireland and Portugal. Other states were also expensive, with NSW featuring the 5th highest prices and Queensland the 7th.

South Australia Treasurer Tom Koutsantonis has challenged the calculations saying they were based on old data and “fundamentally flawed” assumptions.

But Dr Mountain said the data from Europe was the latest available and there was no reason to believe the latest data would be different. He said the Australian data was based on current prices.

South Australia has been at the centre of debate around renewable energy after experiencing a number of blackouts amid the closure of coal-fired power stations and a shortage of gas that has driven up prices.

One South Australian plastics factory has already made the decision to close its doors after 38 years in operation, because of higher costs and soaring electricity prices.

 

To see the full article, follow this link:
http://www.news.com.au/finance/business/south-australia-has-the-highest-power-prices-in-the-world/news-story/178987d30a8e6f273cd8949f34a64c83