Electricity Prices

South Australia's electricity market is continuing to shift as more solar and battery capacity comes online. This is changing the way supply is balanced throughout the day, with strong solar generation putting pressure on daytime prices while batteries increasingly support the market later in the day.

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In September, the South Australian pricing we have been obtaining for businesses remains more favourable than the levels we have seen previously. We are seeing wholesale pricing around 17.5% lower than the same period last year. However, the market is becoming increasingly dependent on timing, with the price available for a contract influenced by both current conditions and expectations for future supply.

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What we are seeing in the South Australian market

• Lower wholesale prices: Around 17.5% lower than August 2025, though SA remains the highest-priced mainland state.

• Solar and batteries growing: Renewables reached 66.7% of generation in August, while battery discharge increased 53.3% year-on-year.

• Forward prices mixed: SA futures eased slightly in August, with CY27 down 5.6% while CY29 rose 3.3%, reflecting ongoing supply adequacy concerns in the outer years.

• Network costs rising: 2026–27 tariffs are now flowing through business electricity bills.

• Changing system needs: SA continues to manage high renewable penetration with limited dispatchable backup, relying more heavily on interconnector imports when wind output falls.

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The result is a market that can look very different depending on when electricity is being used and when a contract is secured. For South Australian businesses, looking only at an average wholesale price does not necessarily tell the full story.

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Futures Pricing Outlook

South Australia's forward market was mixed in August, with near-term contracts easing while outer-year prices firmed.

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In the pricing we have been obtaining for South Australian businesses, forward market pricing has softened modestly over the past month, though it continues to sit below the levels seen 12 months ago.

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During August:

• South Australia CY27 futures fell 5.6% over the month.

• CY28 was broadly stable, down 1.8%.

• CY29 rose 3.3%, continuing to reflect medium-term supply concerns.

• Over the past 12 months, South Australia CY27 futures have fallen by approximately 16%.

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This suggests that while the forward market has consolidated at lower levels through most of 2026, South Australia's forward curve remains distinctly upward-sloping into the outer years — a pattern that signals ongoing market caution about the state's medium-term firming capacity as it transitions away from gas.

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For businesses approaching a contract renewal, we believe it is important to look beyond today's spot price and consider the pricing currently available for the next contract period.

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Network Tariff Changes

The 2026–27 network tariffs have now been in effect for almost three months, with the changes beginning to flow through business electricity bills.

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Network charges have risen moderately for South Australian businesses this year. SA Power Networks' distribution charges were approved with increases in the 2026–27 pricing round, contributing to South Australia being the only state where the regulated flat-rate Default Market Offer rose (up 1.4%) rather than fell.

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These increases are influenced by:

• Higher transmission costs

• Inflation

• Revenue adjustments

• Network investment supporting the transition to renewables

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In the bills we are reviewing, network charges continue to be an important part of the overall cost of electricity. This means businesses can still see rising electricity costs even when wholesale prices are falling, particularly where tariff structures or network charges have changed.

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Supply Outlook – Generation & Infrastructure

South Australia is continuing to build the infrastructure needed to support a more renewable electricity system and manage the state's shift away from gas.

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Several developments are shaping the state's supply outlook:

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• Renewable generation: SA's renewable share reached 66.7% in August, though this was down 8.0 percentage points year-on-year as wind output fell 15.8%.

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• Growing demand: Data centres, electrification and household batteries are key demand drivers — rooftop solar alone met 99.9% of SA's total electricity demand at one point in late August, a new winter record.

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• More battery capacity: Battery discharge increased 53.3% year-on-year to 46 GWh in August, though SA recorded the lowest battery revenues of any region due to inverted intraday price profiles.

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• Peak demand support: Batteries are increasingly displacing gas during evening peaks, with NEM-wide gas generation between 5pm and 8pm falling 67% in the year to August.

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• Stronger interconnection: SA imported 158 GWh in August, more than double the prior year, as reduced wind output drove greater reliance on the interconnector to supplement local generation.​

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What it means for your business

Based on the pricing we are seeing for South Australian businesses, market conditions remain more favourable than a year ago, with wholesale prices down around 17.5% and futures pricing for 2027 approximately 16% lower than 12 months ago. At the same time, network costs have increased, and South Australia remains the highest-priced mainland state — a reflection of its exposure to wind variability and reliance on interconnector imports when local renewable output falls.​

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If your energy contract is approaching renewal, or you would like to better understand your current position, contact TTEG for a complimentary bill check.