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The South Australia Blackout Payment Change

South Australia Blackout Payment Change

The South Australia blackout payment system is due for a change from July 2020. Read on to find out what this means for you.

What’s Changing for the South Australia Blackout Payment?

An ‘inconvenience’ payment is currently paid to South Australian customers who experience blackouts for more than 12 hours.

Single blackout incidents will no longer be the payment’s focus. The new Guaranteed Service Level (GSL) payment will apply to energy customers who suffer through more than 20 combined hours of blackouts in a year.

Why is the South Australia Blackout Payment Changing?

According to the Essential Services Commission of South Australia (ESCOSA) chief executive Adam Wilson, the change in payment structure is largely consumer-driven. The scheme should target those most regularly affected by interruptions, according to customer feedback.

It’s also hoped the national distributor, SA Power Networks, will be able to focus on improving services to the most regularly affected areas.

Where Does the South Australia Blackout Payment Come From?

It might seem like these changes will penalise customers. That may be a matter of opinion, but it isn’t really the case considering the current cost of the scheme. In 2016-2017 the scheme cost over $28 million due to widespread blackouts in December.

Effectively, the cost of the scheme falls on all customers through their standard energy costs. A reduction in overall costs is a priority for South Australian energy customers. ESCOSA estimates the changes will save around $5 million in the first year. This equates to approximately a $5 saving per customer per year.

The South Australia blackout payment aims to find a balance of keeping energy costs down, likewise to these energy saving tips, while ensuring reliability is improved. If you feel like you’re paying too much for power in South Australia, why not let Billy Sumo find you a better deal?

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