Energy price crisis takes its toll on small business
25 May 2023|
Small businesses on the eastern seaboard are set to face power bill hikes of up to $1,310 a year from July 1, the Australian Energy Regulator has confirmed.
In New South Wales, south-east Queensland and South Australia, small business customers can expect increases of between 14.7 per cent to 28.9 per cent, under the final default market offer, released by the regulator today.
In Victoria, small businesses on the default market offer will be hit with an average price increase of 25 per cent under a separate determination from the state’s Essential Services Commission.
“Small businesses, already struggling with soaring input costs, face a devastating blow with the forecast energy price spike,” ACCI chief executive Andrew McKellar said.
“We are now hearing of small businesses that are having to choose between paying their power bills and hiring more people – this is a totally unsustainable situation.
“While the federal government’s price cap intervention and bill relief has taken some pressures off soaring power bills, price caps and rebates alone cannot solve the energy crisis.
“In order to meet the demands for affordable and reliable energy, it is crucial to expedite investments in renewable energy generation, along with the necessary storage and transmission capacity to cater to the needs of Australian businesses and households.
“The repercussions for Australian businesses would be dire if the supply gaps are left unattended. With input costs already skyrocketing, the competitive edge of local industry risks being further compromised.