Electricity Cost Killing Business
Electricity costs are set to rocket by 19.6% for businesses across NSW.
Origin, Energy Australia and AGL have all announced price increases.
Small businesses will be the hardest hit.
In NSW, residential Energy Australia customers will see electricity prices increase by up to 19.6 per cent.
Origin Energy customers will get a 16.1 per cent rise.
In its announcement today, Energy Australia blamed recent rises in wholesale prices following the closure of large coal-fired power stations, as well as increased demand for gas for export.
“This is bad news for businesses and absolutely not what you want to hear,” EnergyAustralia Chief Customer Officer Kim Clarke said in a statement.
“Unfortunately the politics of the situation have now taken over.”
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THE BLAME GAME IS ON
“This is bad news for businesses and absolutely not what you want to hear,” Energy Australia Chief Customer Officer Kim Clarke said in a statement. “Unfortunately the politics of the situation have now taken over.
HOW DID WE GET INTO THIS SITUATION?
Director of the Grattan Institute’s Energy Program, Tony Wood, said he believed the situation was the result of a significant failure of energy policy is both the state and federal level.
WE CAN’T GO BACK
Even if Australia decided not to bother with meeting its commitments to reduce carbon emissions as part of the Paris Agreement, Mr Wood said the world had moved on.
“Power stations would still shut down, and industry would still be facing uncertainty and be factoring in carbon emissions regardless of the policy,” he said.
The lack of business owners and government policy has seen energy reliability decrease because businesses are reluctant to invest in new solar, wind and energy efficient LED Lighting.
“Price increases are nasty and a price increase of 20 per cent is really nasty but I think consumers and businesses should be more concerned that these price increases are also accompanied by concerns about the security of supply,” Mr Wood said.
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