Closure of Power Station added $250 to last year’s SA power bills

July 26, 2018

The closure of South Australia's Northern Power Station added up to $250 to SA electricity bills last year, according to new modelling.

The news reinforces why the Conservative Party has opposed the destruction of reliable baseload power generation.

By contrast, the Labor Party at state and federal levels have clung to green ideology so hard that they have advocated closures such as these - driving up prices for Australians on low, middle and high incomes alike.

The average wholesale power price in SA was 23 per cent higher between May 2016 and December 2017 as a result of the coal-fired power plant closing, according to research undertaken for the Energy Security Board.

Alinta shut the 450MW Northern Power Station at Port Augusta in 2016, leaving the state more reliant on electricity generated using gas, renewables and imports from Victoria.

“A conservative estimate of the impact on typical South Australian residential retail bills of the higher wholesale spot prices would be in the order of $200 —$250 for 2016/17,’’ a report prepared for federal and state governments said.

The price modelling is consistent with warnings delivered by the Conservative Party, business leaders and the then Liberal opposition when the power station closed.

The researchers found the Northern plant could still have been open at the end of last year if Alinta had been able to lock in long-term power supply contracts.

To see the demolition of the plant's boilers, click the box below:

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