SA govt questions power price hikes

The South Australian government has questioned recent electricity price hikes and has asked the independent regulator to check if they are justified.

Energy retailers recently announced average price increases of between $117 and $261 a year from July.

But Treasurer Tom Koutsantonis has written to the Essential Services Commission of South Australia to check if the higher prices are warranted.

"These price increases from AGL, Origin Energy and Energy Australia add significantly to cost of living pressures on affected customers," Mr Koutsantonis said.

"In light of the community concern over the price increases, it is important that customers are presented with independent advice on whether or not the reasons given for them are justified."

In lobbying for the increases, the retailers cited the cost and availability of coal and gas used for electricity generation as a significant factor.

AGL subsequently announced an increase of $228 a year for the average consumer, Origin Energy an increase of $117 and Energy Australia a hike of $261.