“Biggest crisis in a lifetime”, “worse than GFC” hits Australian business — electricity costs

The closures and “heartbreaking” decisions are escalating as electricity contracts for businesses are being renegotiated in the new era of higher wholesale electricity prices. Family run operations that have survived for 40 years are being destroyed. Years of work, investment and training are being erased.

Businesses brace for crippling energy bill increases

Frank Chung News.com

“This is the biggest business crisis I’ve seen in my lifetime,” said Peter Strong, chief executive of the Council of Small Business Australia. “The GFC was managed and it affected everybody, but this is only Australia and we cannot see a solution.

“What we’re hearing is terrible. We’re seeing closures have already started, I fully expect there will be more closures and staff put off. When you’re running a small supermarket, where do you find an extra $70,000?”

Businesses are more exposed to the rapidly rising wholesale electricity costs than householders are, and long term contracts are being renegotiated. As they do, rises of 120% are hitting small businesses.

The price hikes hitting businesses of up 120 per cent — dwarfing the 20 per cent increases faced by households — have been partly blamed on […]

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November 10, 2018 at 10:27AM

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