SA Treasurer urges bill-stressed businesses to negotiate with energy suppliers

The treasurer’s comments came after firms like Nippy’s said power bill hikes were battering their businesses.

Solar panels on the Electrolux factory at Dudley Park. Picture: Supplied

Larger energy consumers should negotiate better contracts and avoid the spot market in a warning to the state’s big business sector.

Treasurer Stephen Mullighan said large operators such as Nippy’s – whose power bills have surged from $51,600 last June to $109,580.10 – should “try and negotiate with the retailer” for better contracts, and avoid the volatile spot market.

Mr Mullighan, announcing grants of up to $50,000 for small businesses to invest to reduce their energy costs, said it was critical big businesses negotiate their contracts.

Electrolux Group Adelaide GM Phillip Saloniklis. Picture: Tara Miko

Treasurer Stephen Mulligan. Picture: Mark Brake

“When you’ve got large energy consumers in the South Australian economy … You do have a level of market power to be able to negotiate a contract with a retailer and try and bring down those prices that you’re charged by the retailers on an ongoing basis,” he said.

Nippy’s monthly electricity bill more than doubled in a year despite it investing in solar panels and using fewer power hours.

Electrolux Group has upgraded one furnace from gas to electricity, and invested heavily in solar panels about eight years ago that powers its day shifts.

Adelaide general manager Phillip Saloniklis said there had been minor power price rises for the plant.

Small Business Minister Andrea Michaels said the second round of grants under the $154m Economy Recovery Fund would help smaller operators invest in energy-saving systems.

Grants range from $2500 to $50,000, subject to a matching contribution from the applicant.