As reported in InDaily yesterday, a Melboure Energy Institute analysis has accused power companies of exploiting low competition in the South Australian electricity market to force up prices during periods when wind power output was low.

“A Senate inquiry could get to the bottom of what’s really going on with these … electricity providers and I call on all of my SA Senate colleagues to support the investigation,” Senator Hanson-Young said.

“Forcing South Australians to pay so much for their electricity is deplorable. Multiple reports have shown that power prices in SA are being artificially inflated and it’s time the Government stepped in.

“These providers need to be pulled into line because the rising price of power is taking an unacceptable toll on household budgets.”

Meanwhile, a group of South Australian advocacy organisations has called on the State Government to launch an independent inquiry into the electricity industry.

Senior office holders of Business SA, Central Irrigation Trust, Council of the Ageing, Primary Producers SA, Property Council of Australia, SA Council of Social Service, SA Wine Industry Association and Uniting Communities have signed an open letter, released this morning, calling for the independent inquiry.

“South Australia’s key advocacy organisations are deeply concerned about the impact high wholesale prices are having on the community and economy and what future costs might eventuate in the absence of transparent and evidence-based policy decisions,” the letter says.

“We are also concerned about predicted reliability shortfalls in South Australia if we cannot access sufficient ‘baseload’ generation, whether that be locally or through the national electricity market.”

A State Government spokesperson told InDaily this week that the Melbourne Energy Institute report was “concerning and the Government has already asked ESCOSA [Essential Services Commission of SA] to investigate this issue”.

But the electricity industry today hit back at its critics after activist group GetUp! this week released a report claiming AGL Energy, Origin Energy and EnergyAustralia had used their market power in Australia to push prices beyond those of any other OECD nation.

Australian Energy Council chief executive Matthew Warren today accused GetUp! of failing to disclose a commercial relationship in its report.

“GetUp! campaigns to get electricity customers to switch away from AGL, Origin and EnergyAustralia to Powershop, a competitor business. In return it receives a commission for customers who switch,” said Warren.

“Its recently released report, ‘Australia’s retail electricity markets: who is serving whom?’ singled out AGL, Origin and EnergyAustralia, without disclosing the commercial incentive it has to encourage customers to switch away from those businesses.

“Like any organisation or individual, GetUp! has the right to advocate on energy policy issues.

“However, like the businesses or organisations it seeks to hold to account, it also has a responsibility to be transparent, given its profitable commercial relationship with a major competitor of the businesses it criticises.”

Reform of the NEM will be discussed at a Council of Australian Governments (COAG) meeting of the country’s energy ministers tomorrow.