The reduction was a key election commitment for the government and is projected to put $360 million back into households over the next four years.

"We want more money in the pockets of everyday South Australians so that they can spend it the way they choose to spend it," Premier Steven Marshall said on Thursday.

Although the budget is not expected to be delivered until September, the relief will be in place from July 1.

"We are delivering our long-held promise to provide cost-of-living relief to South Australian household, which ensured massive hikes under the previous Labor administration," Mr Marshall said.

The government's pledge to cut total ESL bills by $90 million, will not impact emergency services, as savings will be found in other areas, Treasurer Rob Lucas said.

"We have been cutting out waste and over-expenditure in the public service, we have got rid of 50 ministerial staffers already," Mr Lucas said.

The Liberals took the policy to the recent state election, promising to bring relief within the government's first 100-days.

Shadow treasurer Stephen Mullighan welcomed the savings for households but said it was a clear example of a broken election promise, as Mr Lucas had promised a $150 dollar saving for households.

"I think it is a shame, that we have a government here who certainly as the resources to deliver on their election commitment, instead they haven't delivered," Mr Mullighan said.

Australian Associated Press