Warning on job cuts

ABOUT half of Queensland’s businesses say they will shed jobs if electricity prices continue to rise, a survey has found.

The finding from a Queensland Electricity Users Network survey comes as the State Government’s competition authority prepares to release draft pricing for 2018- 19 this month and the network ramps up efforts to cut prices.

Network co- ordinator Jennifer Brownie said the survey found nearly 50 per cent of businesses were experiencing moderate to severe difficulties paying their power bills.

“Most businesses reported they were unable to pass on the rising cost of electricity,” Ms Brownie said.

“To accommodate rising power bills, businesses have modified their electricity consumption, installed more energy efficient equipment and in some cases invested in alternative energy generation.

“However, the main result is businesses have absorbed the increased cost and that has affected their profitability and viability with about a quarter surviving by taking on more debt.

“The squeeze on profitability has meant a lesser ability for businesses to pay staff higher wages.”

Ms Brownie said electricity prices for regional Queensland businesses and farmers had increased by more than 15 per cent in the past two years and followed a doubling in prices in the past decade.

She said if the price rose again, about half of the businesses said they would experience strong to severe stress and that further jobs losses could be expected.

“The survey clearly indicated that if electricity prices were reduced, the viability of businesses would improve with many considering employing more staff and expanding,” she said.

“With the help of small businesses throughout Queensland, we can post their power bill experience on the QEUN website which will demonstrate to the Queensland Government the urgent need to reduce power bills.”

To post your power bill experience, or for further information, go to www.qeun.com.au.