Electricity prices 'largest cost' for businesses

Soaring electricity prices have contributed to utilities becoming the biggest cost increase faced by businesses in Australia, according to new figures from the Australian Bureau of Statistics.

Citing the data, The Australian reported that electricity bills are approximately 10.4 per cent higher than they were one year ago.

While this is below the energy inflation recorded in 2010 - when utilities rose an average of 16.5 per cent - the figure highlights the challenges faced by businesses in the post-GFC economy.

Josh Williamson, joint chief economist at Citigroup, said that while business costs on the whole are growing more slowly - with annual growth in wholesale prices dropping to 2.7 per cent from 3.4 per cent in the June quarter - utilities are the exception.

Businesses and consumers may find that they can make a saving on their electricity bills or other utilities costs by comparing providers and switching to a cheaper tariff.

A price comparison and switching service could help you save hundreds of dollars on your electricity and gas bills by searching for better deals in your area than the rate you are currently paying.

Whether you are a large commercial enterprise, a small or medium-sized business or even a home-based start-up, you may be able to save a significant amount of money simply by switching to a different electricity provider.

Posted by Charlie Moore