The Minister made the remark after conceding there is little he can do to stop the domestic power bills of South Australians increasing by as much as 30 per cent due to privatisation and deregulation.

"There will be significant increases and there's not a lot we can do about it," Mr Conlon said.

He told an industry conference in Adelaide tighter regulation was required to ensure the effectiveness of power inter-connectors that carried electricity between states.

"It is clear that many of the issues that face South Australia can only be addressed through better regulation of the national electricity market," Mr Conlon said.

"I believe we can only derive the full benefit of interconnection when firmer trading of electricity is possible across inter-connectors. It is important that electricity trading in the national market continues to mature, and that firm and secure financial instruments are available."

Mr Conlon also hit out at market manipulation by power generators, it particularly the practice of "gaming", in which power-generation companies withhold electricity to drive up prices.

"We will do all in our power to ensure businesses do not exploit market weakness or their market position," he said.

Tony Cook, managing director of TransEnergie, which is building the 220 megawatt Murraylink interconnector between Victoria and South Australia, told delegates that there was too much regulatory uncertainty and complexity in the energy market, which was thwarting progress.

Mr Cook said governments were driven by fears that the 'lights might go out' and as a result took a "shareholder view rather than a policy perspective" and interfered in the market.

He added government-owned monopoly services were pushing for greater investment in regulated facilities, affecting market forces and prices and making private investment less attractive.