South Australia's Electricity Prices Uncovered February 25 2015
Greener Housing Solutions came across a news article we found it very interesting as it may shine some light on why South Australia’s electricity prices are high in comparison with most other states. Greener Housing Solutions has also obtained information that South Australia has one of the highest electricity prices in the world.
It was written that the power companies have been allowed to invoice the SA electricity consumers, for their supposed tax liability of $414 Million in which SAPN has admitted that they don’t have a corporate tax liability??
Energy analyst Bruce Mountain realised this tax issue when he uncovered that the regulator had allowed $414 million of company taxes into its pricing structures
“For Mountain, an engineer, chartered accountant and economist with more than two decades’ experience in advising governments, regulators and companies on energy policy, this raises an intriguing question.”
“So, how much tax has SAPN actually paid, and how does this compare to what it has been allowed to recover from electricity users?” The reposed from SAPN spokesman Paul Roberts to this question says: “As a partnership, SAPN does not have a corporate tax liability. That’s a matter for the partners.”
“The SAPN is 51 per cent owned by two companies that both belong to the Cheung Kong Group of companies. Owned by a Hong Kong-based billionaire, these companies are conveniently incorporated in tax haven, the Bahamas. The remaining 49 per cent is owned by Spark Infrastructure, which also has an interest in Victoria Power Networks. Due to a variety of factors, including accelerated depreciation and losses, Spark is also not currently paying tax on income from its SAPN assets.”
It has been calculated that SAPN had pre-tax profits for 2012-13 of $381 per connection, compared with $102 per connection for UK Power Networks. SAPN had no response to this claim.
It is strange that the state government-owned networks, which are not required to pay income tax to the Commonwealth government, are still able to factor the tax allowance, calculated at the 30 per cent rate, into their pricing structures.
Reference Click Here to view Sophie's full article
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