Energy bill zaps small operators

SMALL businesses are being dealt more than their fair share of Australia’s rising electricity prices, the small business ombudsman says.

Kate Carnell says she is “deeply concerned” that recent submissions to the Australian Competition and Consumer Commission’s inquiry into the electricity system show small businesses are being gouged.

Households in some states are dealing with price rises of between 15 and 18 per cent but most small businesses are grappling with hikes above 20 per cent, she says.

“It’s totally unacceptable that energy-dependent small businesses like manufacturers and rural industries are being slugged more than householders and big business,” Ms Carnell said in a statement.

The ombudsman has highlighted several examples of submissions to the inquiry on electricity prices and supply showing how small businesses have been hit by price jumps, including a South Australian Wine Industry Association case study of a large winery.

The winery invested $400,000 in initiatives to reduce its electricity costs by about $120,000 a year, only to face a 160 per cent price hike that meant it had to pay $250,000 more annually.

Ms Carnell said the submissions generally show small businesses are concerned with a lack of retail competition, complex price comparisons and billing, transparency and disincentives to reduce consumption.

She said an industry code providing minimum standards, as has been suggested by the NSW Business Chamber, could help tackle these issues.

Written submissions to the ACCC inquiry closed at the end of June. Public hearings are being held until midAugust. A preliminary report is expected to go to treasurer Scott Morrison, who requested the inquiry, by September 27, with a final report to be completed by June 30 next year.