Why SA power prices are too high

Much has been made about the impact of the carbon tax and clean energy initiatives on South Australian power prices, completely missing the wider story of a decline in wholesale energy costs and faulty government forecasts.

Clean energy support schemes such as the Renewable Energy Target and Energy Efficiency Targets are pushing down the wholesale price of electricity, substantially offsetting their impact on consumer bills. Yet news coverage around regulated electricity price rises has failed to take this into account.

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