CANBERRA: The closure of Victoria’s Hazelwood coal-fired power station is expected to drive up South Australian power bills by 7.2 per cent next financial year, adding about $115 to the annual bills of an average household. The estimates, released in the Australian Energy Market Commission’s (AEMC) annual report on household price trends, shows the closure of coal stations as the major driver of wholesale price increases. AEMC chairman John Pierce said an abundance of renewable energy also was having an impact on the cost of power. “Overall electricity prices are expected to increase in most parts of Australia over the next two years as a result of the closure of the Northern Power Station in South Australia, increased renewables, and the recently announced closure of the Hazelwood power station in Victoria,” he said.
South Australia imports coal-fired power from Hazelwood and other Victorian coal generators via interconnectors. The state’s sole coal-fired power station at Port Augusta closed in May prompting deep concern about spiralling prices and falling reliability across the state’s network.
South Australia already has the highest wholesales prices in the nation. Household bills in South Australia are expected to fall 2.2 per cent in 2018/19 as new wind generation comes online, partially offsetting the Hazelwood retirement in the short term. But the AEMC predicts the Hazelwood retirement will mean bills for an average household will be about $150 higher in 2018/19 than they otherwise would be. Mr Pierce said big investments in wind power were having an impact on coal-fired power.
