Small business electricity costs to rise especially in regional areas

Independent energy pricing comparison service MakeItCheaper.com.au today warned regional businesses that Prime Minister Kevin Rudd's proposed 'super profits' mining tax was likely to add to existing pressures on their electricity costs - at a time when electricity prices were already expected to rise dramatically in coming years.

Victorian small businesses, especially in regional areas, should prepare for price hikes, with their counterparts in New South Wales recently told by that state's pricing tribunal that Country Energy electricity prices would rise at least 42 percent by 2012/13[1].

"Prices are on the rise due to infrastructure costs and government policies such as the renewable energy target, any eventual Emissions Trading Scheme, and now the 'super profits' tax," said Make It Cheaper CEO Tim Wolfenden.

"The 'super profits' tax is likely to create extra costs for coal and gas producers, which will inevitably be passed on to customers," said Wolfenden. "Small businesses should be rightly concerned about the effects of a number of government policies on their energy bills."

To combat rising energy costs, Wolfenden advised businesses to shop around for the best deal from electricity suppliers.

"Energy prices are going to increase every year for the foreseeable future, but the more businesses start to switch suppliers, the more competition there'll be in the market and competition is what will drive suppliers to offer better deals," he said.

MakeItCheaper.com.au provides a free price comparison and switching service that allows businesses to find the best available electricity and gas deals - with savings of up to 20%.

"Changing energy suppliers is something that business owners haven't traditionally considered. But there are significant savings to be made and, as prices rise, businesses will learn to switch between energy companies as they do internet or telephone suppliers," Wolfenden said.

To discover how much they can save, businesses can visit MakeItCheaper.com.au or call 1300 957 721 for a free quote.


[1]Independent Pricing and Regulatory Tribunal of New South Wales http://www.ipart.nsw.gov.au/files/Media%20release%20-%20Electricity%20Price%20Rises%20Change% 20-%2028%20April%202010%20-%20WEBSITE%20VERSION.PDF

 

About Make it Cheaper

Make it Cheaper is Australia's first business price comparison service. Currently allowing businesses to compare gas and electricity suppliers to find the best deal available in their area, Make it Cheaper can save businesses up to 20%. Launched in October last year, the service is both free and independent. To find out how much they can save, businesses can visit MakeItCheaper.com.au or call 1300 957 721 for a free quote.

 

Notes to editors:

What's involved in switching?

  • Businesses throughout Victoria are able to switch between around ten different electricity suppliers.
  • Rates vary according to postcode, which can make finding the best deal a difficult task. This is where Make It Cheaper comes into its own - comparing the entire market, then helping businesses switch to the cheapest deal, for free.
  • Switching is seamless, with no interruption to electricity supply. The only difference is the new supplier's name at the top of the bill, and the price the business pays.
  • Switching takes six weeks on average.
  • Businesses on contract to a particular supplier often discover that the small exit penalties on the contracts are quickly recouped by the savings obtained by changing to a cheaper supplier.
  • A typical small business has an electricity bill of around $3,400 a year.

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Finding a Better Business and Home Electricity Deal

Running a business can be extremely stressful without having to think about whether you're with the best energy supplier, and checking whether you have a cheap electricity deal for your home is the last thing you have time to do.

Business and home electricity prices have risen over the past 12 months and will continue to rise over the next 12 months. Businesses and home owners have seen energy bills increase by up to 20%, and are likely to continue to see further prices increase next year and the year after.

Fortunately, there is an increasing amount of competition between residential and business electricity suppliers, across the majority of Australian States and Territories, including South Australia (SA), Queensland (Qld), New South Wales (NSW) and Victoria (Vic).

Finding a new electricity supplier can take a lot of time and expertise, time which is often better spent running your business. Make It Cheaper takes the leg work out of finding a better gas and electricity deal available for your home or business's needs. We will ensure that shopping around for a new deal is simple, easy and cheaper for all Australians.

Call Make It Cheaper today on 1300 95 77 21 to find out how much you can save.