The Federal Court has dismissed an appeal by SA Power Networks to charge more for electricity distribution, which would have increased bills for all South Australians.

The ruling was made this morning in Adelaide and upholds the previous determination against SA Power Networks made by the Australian Competition Tribunal, following appeals by the State Government on behalf of households and businesses.

In dismissing the appeal, the Federal Court rejected each of the arguments put forward by SA Power Networks, including the cost of labour and return on debt, and ordered the company to pay costs.

The decision means that SA Power Networks will be able to raise $700 million less over the period to 2020 than they originally sought.

Energy Minister Tom Koutsantonis today said the Federal Court decision was a win for South Australians against higher power bills. He urged SA Power Networks to accept this latest determination and not appeal the matter to the High Court.

Background

SAPN is the monopoly operator of the South Australian electricity distribution network of poles, wires and substations.

The network was sold to the monopoly by the previous Liberal Government when they privatised ETSA in 1999.

In October 2015 the AER made a decision on the SAPN revenue allocation for 2015-2020, providing a total revenue allowance of $3.84 billion, compared to the $4.53 billion sought by SAPN in its revised proposal.

SAPN then applied to the Australian Competition Tribunal for a merit review of the AER’s determination.

Energy Minister Tom Koutsantonis intervened in the process to advocate for the affirmation of AER’s decision.

The Australian Competition Tribunal in October 2016 determined against SAPN’s appeal, with SAPN then appealing the determination to the Full Federal Court.

SA Power Networks’ costs represent over 30 per cent of an average consumer’s annual electricity bill.

Media Contact: David Russell 0434 307 012