The Australian Small Business and Family Enterprise Ombudsman says small-business operators are the forgotten people in Australia’s crisis of rising energy costs.
Ombudsman Kate Carnell says high energy users like manufacturers and hospitality businesses are casualties of a failed system.
“It makes sense for heavy users to negotiate long-term contracts, but it’s nearly impossible to meaningfully compare quotes without expert knowledge,” Carnell said. “Combined with poor reliability of supply, small businesses are in a precarious position. It’s a disincentive to employ and invest.
“For manufacturers, the rising cost of energy has also heightened their vulnerability to foreign competition, eroding one of the few cost advantages that Australia has compared to other countries. It’s a terrible shame that one of the most energy-abundant nations in the world has reached this point.”
Carnell said the Finkel Report provides a way forward. The recommendations are technology-agnostic, they support growth in renewables and storage, and encourage lower emissions from coal and gas.
“It’s encouraging that COAG endorsed 49 of the 50 recommendations and some good will come of that,” she said. “The Commonwealth has not ruled out a clean energy target and is working towards this. The states need to stop grandstanding and get on board with a national approach. Bans and moratoria on gas production are part of the problem and should be lifted.”
Carnell said business as usual is no longer an option. Business as usual is lack of reliable power and unsustainable price increases.
“If we don’t fix the policy settings there will be small business closures and job losses, it’s that simple,” she said. The only growth will be in high-polluting diesel generators and off-grid generation. Investors need confidence there’s not going to be another change of policy when there’s a change of government.
“Without confidence and stability there won’t be investment in baseload power generation. Without investment there will continue to be price hikes and unreliability. The consequences for small business, employees and consumers are potentially dire and can’t be allowed to occur,” Ms Carnell concluded.
Inside Small Business
