Small business electricity costs to rise by 36%

The Determination by IPART in early March into the pricing of electricity in NSW is the result, in part, of a failure to properly manage the State’s electricity assets over many years says the NSW Business Chamber.

“Under this Determination, the average small business in Sydney will see electricity prices rise by at least $1,433 a year. This represents a 36% increase over three years. IPART also details the cost to small business of a CPRS with average annual price increases of 60% or $2,421 under the Rudd Scheme,” said Paul Orton, Policy Director of NSW Business Chamber.
“NSW consumers and businesses are paying a heavy price for inaccurate forecasting of electricity demand.
“The jump in “network charges” is recognition that NSW has under-invested in electricity infrastructure for too long. The State Government stripped dividends from electricity companies and under-invested in necessary poles and wires.
“We are now paying the penalty of failures on the part of the industry, regulators and government to accurately forecast energy demand and the resultant need for more and better electricity infrastructure.
“What we have seen is a failure to invest in the long term – and a failure in management resulting in major price increases. This is further proof NSW is poorly served by an electricity sector in government hands.”

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