Sharing pain on electricity
MORE than 20 per cent of businesses say they have no choice but to try passing on spiralling energy prices to their customers.
And twice as many again will seek to absorb sharp increases in costs, polling has found.
Of almost 400 businesses polled in the latest quarterly survey by the Victorian Chamber of Commerce and Industry, more than a third said they were feeling the pinch from energy price rises. Manufacturing, tourism and hospitality sectors were the hardest hit.
The Business Trends and Prospects survey found 15 per cent of businesses were prepared to shop around among energy providers to get a better deal.
A further 18 per cent said they would need to look at cost savings within their businesses and 1 per cent said they would consider closing.
Victorian Chamber chief Mark Stone said energy pricing and supply were serious issues for businesses as they faced big increases when renewing their contracts.
“While 15 per cent of businesses said they would try to manage increased costs by switching energy providers, the majority said they have accepted the increases and will look to absorb the costs themselves,” he said.
The chamber was concerned about the knock-on effects for staffing levels and job growth, he said.
“We cannot shy away from the fact this will have an impact on people, as this extra burden faced by businesses limits growth and will affect our state’s economy if left unchecked,” Mr Stone said.
The survey found that one in four businesses in the manufacturing, tourism and hospitality sectors reported difficulties in getting competitively priced energy supplies in the past year.
Energy security and low prices were cited by 37 per cent as a priority.
Just over 20 per cent said increased renewable energy supplies or reduced carbon emissions were top priorities for governments.
Aside from concerns about energy, sentiment about the national economy improved.
The chamber credited this to “pro-business policies from the Federal Government such as a reduction in penalty rates and a reduction in the company tax rate for smaller businesses”.
“While surveyed businesses had the strongest sentiment for the national economy in more than three years, we are seeing that Victoria’s energy crisis is still a major concern which is impacting the economic outlook for the state,” Mr Stone said.
Almost three quarters of Victorian businesses were expecting the economy to stay the same or deteriorate over the next year, he said.
Mr Stone said energy security and lower prices were top priorities. He described them as national issues that needed to be addressed through a long-term plan. AUCTION NATIONAL TENANT OFFICE OR SHOWROOM DISPLAY
WHILE 15 PER CENT SAID THEY WOULD TRY TO MANAGE INCREASED COSTS BY SWITCHING ENERGY PROVIDERS, MOST SAID THEY WILL ABSORB THE COSTS