Tuesday 16th August 2016 - 12:18 pm

South Australian families “ripped off” on electricity bills

by Alan Thornhill

South Australian families are paying hundreds of dollars  a year more for their electricity than those in other parts of the country, according to a new report.

 

The report by the research group GetUp says that’s because the big three energy companies have been exploiting their market power in that State.

 

It says AGL, Origin and Energy Australia regulate what retailers can charge their customers.

 

Miriam Lyons  of GetUp   says the report, written by Bruce Mountain, reveals the hidden costs of big three’s stranglehold on the South Australian retail market.

 

And she said South Australian families, in particular, are being “ripped off. “

 

“Many South Australians are just keeping their head above water, and they shouldn’t be being ripped off by companies who are taking advantage of their oligopoly position to rake in massive profits,” Ms Lyons added.

 

“How is that, after deregulation, retail charges went from next to nothing to a huge 38 per cent slice of the average customer’s bill?” she asked.

 

The report says AGL, Origin and Energy Australia have a stranglehold on the state’s retail market.

 

 

“How is that, after deregulation, retail charges went from next to nothing to a huge 38 per cent slice of the average customer’s bill?” she asked.

 

This has huge impacts for people struggling to pay unaffordable energy bills.

 

 

Ms Lyons said the three companies are still  lining the pockets of  their energy executives “at the expense of Australian families.”

 

 

“Companies like AGL, Origin and Energy Australia are big enough that they should be able to undercut new entrants to the market ,”  Ms Lyons said.

 

“Instead the new players are much cheaper and the big guys have been able to overcharge customers whatever they want,”   she added.

 

 “When this kind of behaviour was revealed in the UK, there was a huge public outcry – yet their retail charges are a fraction of what the Big Three charge here.”

 

So far, none of the three companies has replied to these allegations.

 

 

 


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Alan Thornhill is a parliamentary press gallery journalist.
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