MEMBER for Mount Gambier Troy Bell says he is disgusted by the decision of three major electricity providers to increase prices throughout the state.
Last week, AGL announced standing offer electricity prices in South Australia will increase 18pc next financial year and Origin and Energy Australia quickly followed with similar revelations.
Mr Bell said this was a result of a poorly planned transition to renewable energy.
“The State Government put forward a 40pc renewable energy target without any clear pathway,” he said.
“I’m not against renewable energy by any means, it is the way of the future, but a more ordered transition into it would have been better.”
Afraid for the welfare of people throughout the community, Mr Bell said it was a state of crisis.
“This is going to hurt low income earners the most – it will cost jobs and possibly lives of the vulnerable and frail, they won’t heat their homes for fear of the price rise,” he said.
“I also know of businesses currently paying $200,000 and this will double for them in the new financial year – it will result in job losses.”
Mount Gambier Chamber of Commerce president Lynette Martin also expressed her grave concerns for businesses throughout the city with fears it will dramatically impact on their success.
“It is a huge impost for businesses, most of them can’t pass on the increase in cost to the consumer,” she said.
“They need to shop around to different providers and hopefully find a better deal.
“It is a nervous time as they await the arrival of this.”
Energy Minister Tom Koutsantonis said the announcement from AGL emphasises the urgent need for action from the Federal Government to implement a market mechanism that drives new investment in electricity generation.
“What AGL has announced is the result of 10 years of policy inaction that has lead to a strike on investment in the National Electricity Market,” he said.
“South Australians on AGL standing contracts can save hundreds of dollars a year by switching retailers and signing on to a better market offer.”
The Finkel Review was also released recently, calling for the implementation of a market mechanism that drives new investment in electricity generation in the system to increase both energy security and competition between participants.
“Those calls have been echoed by every major industry and business group in the country,” Mr Koutsantonis said.
“Now is the time for action from the Federal Government to fix the broken national electricity market.”
