"The reduction in justifiable charges and revenue results from adjustments downwards by ESCOSA in AGL's allowable energy charges and network charges," said ESCOSA's chairman, Lew Owens

The new charges will apply from 1 January next year and will remain in force until revoked or revised by the Commission.

In response, AGL said it will comply with the decision of the Commission. "AGL has participated in a rigorous, independent process established by the ESC and the South Australian Government, and fully complied by providing all information requested," said AGL general manager South Australia, Sandy Canale.

"These price increases are regrettable but they reflect the costs incurred by AGL in the purchase and supply of electricity to our customers."

The Commission said electricity prices are in general higher in SA than eastern seaboard States because of higher state network charges payable to the monopoly power distributor, ETSA Utilities.