How Small Businesses Can Respond to a 9% Rise in Energy Costs
Small businesses all across Australia are set to face a hike in electricity bills from this July 1, 2025, with variable impacts based on the state. These rises, primarily due to mounting electricity production and network expenses, will put pressure on operational costs. Below, we bring you the key statistics and essential statistics to assist businesses in staying informed & prepared.
New South Wales (NSW)
- Small businesses linked to the same network will experience an 8.2% rise in electricity costs.
- The annual electricity bill is all set to rise by $376, reaching $4,988.
Queensland (QLD)
- Small businesses are going to witness a 4.2% hike in electricity bills.
- Average yearly bills will rise by $175, resulting in a total of $4,439.
South Australia (SA)
- Small businesses are going to experience a 6.6% hike in electricity costs.
- The average yearly bill tends to rise by $350, attaining $5,707.
Victoria (VIC)
Business on the Victorian Default Offer will see annual increases between $77 & $128, varying by distribution zone.
Why Are Prices Soaring?
The Australian Energy Regulator (AER) has explained the recent price increases based on a number of factors. One of the major reasons is the increased cost of electricity production, which has been fuelled by soaring wholesale energy prices. The increased costs have a direct effect on consumers and businesses. Moreover, increased network prices, including the cost of maintaining and upgrading infrastructure, also account for the increase in the cost of electricity. Another key contributor is the power station breakdowns in coal-fired plants, which have caused supply bottlenecks and higher dependence on other energy sources, further causing costs to rise.
What Small Businesses Can Do?
As the cost of energy continues to escalate, small businesses need to seek ways to better control their expenses. Energy Minister Chris Bowen has advised businesses to shop around for energy deals from various retailers in order to get the best possible deal. By comparing and analysing existing choices, businesses can be assured of being on the most affordable plan for their requirements. Moreover, companies can go for renewable energy options like investing in solar power, which can decrease their dependency on grid electricity and translate into long-term cost savings. Adopting energy efficiency measures is also a good idea. Simple things like the replacement of traditional lighting with LED lighting, optimising appliance operation, and enhancing overall energy management can yield impressive savings.
The imminent electricity price hike will add financial pressure to small businesses across Australia. Staying well-informed and exploring the affordable solutions, businesses tend to lessen some of the rising expenses. Now, it is time to evaluate your energy plan and consider sustainable options to future-proof your business.
Seeking for any help? At Utility Market, we are specialised in helping businesses secure competitive energy rates and explore solar solutions.
