SA premier seeks lower power prices

SA's premier says his government will do "what it takes" to drive down electricity prices. Source: AAP

THE South Australian government will do "what it takes" to drive down electricity prices, Premier Jay Weatherill says.

Mr Weatherill has backed the actions of the state's energy regulator as electricity retailer AGL Energy seeks to challenge an interim price ruling by the Essential Services Commission of South Australia (ESCOSA).

ESCOSA has determined that businesses and households on AGL's price regulated standing contract should get an eight per cent cut in 2013, worth about $160 to the average household.

AGL has taken the issue to the SA Supreme Court arguing that ESCOSA has wrongly exercised its power under the legislation to review prices due to special circumstances.

Mr Weatherill said the state government would watch the outcome of the court case and would review its legal options.

But he said the government's priority was to ensure South Australians paid the lowest possible prices for power.

"Obviously we want a functioning electricity market and we want people to be able to participate in that successfully," Mr Weatherill told reporters on Wednesday.

"But beyond that I want the lowest possible prices for South Australian energy consumers.

"We'll do what it takes to drive those prices down."

AGL's court action on power prices comes ahead of a final price determination by ESCOSA on December 14 and could delay that final ruling.

In its fiscal 2013 earnings guidance AGL Energy said adverse regulatory pricing decisions in Queensland and South Australia would reduce underlying profit by approximately $45 million.

When ESCOSA ruled on the price cut in October Mr Weatherill called on all electricity retailers to pass on the savings to their customers, even though many businesses and households operated on market contracts not subject to the same regulation.

"It's something they can do, it's something they should do and it's something that I demand of them," Mr Weatherill said at the time.

On Wednesday, the premier again called on energy retailers to do the right thing by consumers and also backed the work of the regulator.

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