Greek Australian MP Tom Koutsantonis, South Australia’s Energy Minister, is concerned with AGL’s decision to suspend investment in power generation in SA. AGL have claimed this is due to a proposed cut in electricity prices by the state’s energy regulator.
Mr Koutsantonis contacted AGL after they said they will suspend two proposed wind farm projects in SA, as well as an extension to its gas-fired power station at Torrens Island in Adelaide. They also stated that they will cut back on discounts to their customers.
AGL have said that the draft decision, are “ill-considered, will harm competition and cause long-term cost increases for consumers”. Mr Koutsantonis told ABC that: “AGL and most of the retailers are happy to take the increases but are always very reticent to give the decreases”. “But I think it’s a warning to everyone when you play with power prices you can get some regulatory uncertainty, so I want to make sure ESCOSA (Essential Services Commission of SA) got it right but I always want to make sure that AGL are doing the right thing.”
