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Victorian small businesses and consumers face electricity price hike

News today suggests that the Emissions Trading Scheme (ETS) proposed by the Federal Government is likely place significant strain on Victorian householder and business finances, by hiking up the price they pay for their electricity.

A briefing document written earlier in 2009 for the government suggests that a Victorian's household energy bills could jump by around $7 per week, something over $350 per year.

What's unclear is the impact this could have on a small business.  A businesses bills are typically three or four times higher than that of a householders.  Doing the sums, we could see something like $1150-1400 added on per year for a small business owners energy bill, due to the ETS.  A shockingly high amount - but it hammers home the fact that there is a high price to pay to become environmental.

The business owner is going to be hit hard, and will have to redo some of it's core product pricing structures to understand if it can still make a decent margin.  What we will inevitably see is small businesses passing on their costs, regardless of whether their product or service is a B2B or a B2C solution, to the end consumer.

The ETS is going to be the catalyst for a very large set of standing dominoes, eventually toppling down and having far reaching impacts.

Of course, the energy generation mix that Victoria has - significantly skewed to coal fired power stations - and therefore pumping out the CO2 emmissions that the ETS is aiming to penalise and eventually reduce, does not help the cost issue.

For a small business or householder in Victoria it's ever more important to gain a grip on the energy costs you have.

Switch to a cheaper provider and Reduce & Save energy by turning off lights, heating or air conditioning and installing any energy efficiency measure that are available to you.