South Australia New South Wales Interconnector: Preliminary analysis of potential impact on electricity prices

Richard Lenton 


Published 2018-07-03

ACIL Allen Consulting was engaged by ElectraNet to provide preliminary estimates of the impact a new interconnector between New South Wales and South Australia. The modelling indicates that the new interconnector is projected to place downward pressure on the wholesale spot price of electricity in South Australia and New South Wales. The projected impact on retail bills largely follows the impact on the wholesale spot price:

— we project that residential and small business customers in South Australia will experience a reduction in their electricity bills with the new interconnector, with the reduction varying each year

— in nominal terms, over the first three years to 2026, the modelling indicates that annual residential customer bills would reduce by up to about $30 in South Australia and $20 in New South Wales for a representative customer.

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