Carbon tax will increase small business power bills, says Business Chamber

The IPART final determination for electricity prices confirms that the carbon tax will increase electricity bills for small business, according to the NSW Business Chamber. The Business Chamber said the combination of the carbon tax and higher network costs will see small businesses’ bills to “sky rocket”.

The Business Chamber said IPART’s final determination recommended the following electricity price increases for small businesses:

• $270 per annum for Integral Energy customers
• $472 per annum for EnergyAustralia customers
• $555 per annum for Country Energy customers

The introduction of the carbon tax will contribute to half the value of the price rises, IPART has determined.

“NSW’s skyrocketing electricity prices are being driven by government - the introduction of the world’s biggest carbon tax and a reluctance to reform the electricity network are forcing electricity prices up for small businesses,” said Stephen Cartwright, CEO of the NSW Business Chamber.

Cartwright said energy bills for small businesses will “jump through the roof” from 1 July as a result of the carbon tax.

“Small business is already bearing the brunt of energy price rises to fund inefficient electricity networks in urgent need of reform,” Cartwright said. “Now they are being slugged with a carbon tax that will do nothing to reduce global carbon emissions, it will only increase the cost of running their business.”

Cartwright urged the federal and state governments and energy regulators to work together and act decisively to reform electricity network regulation and ownership to keep electricity prices at a reasonable level.

“IPART has made a number of recommendations to keep a lid on rising electricity prices through reform of the National Electricity Rules and the National Electricity Law and reviewing reliability standards, green schemes and subsidies,” said Cartwright.