Queensland power price rise to hurt Cairns businesses fearing reputation and quality damage

Running fridges 24 hours a day and airconditioning for more than 12 hours is how this Cairns business ensures quality. But as it cannot be compromised, the management is concerned about the business and its customers.

RUNNING fridges 24 hours a day and the airconditioning for more than 12 hours is how this Cairns butcher ensures quality, but management have grave fears for the business and its customers with the impending power price hikes.

Manager and head butcher at Stratford’s Marsh Butcheries Nick Dagg said between multiple fridges, aircon, four cold rooms and a smoking oven, the business accumulates a monthly power bill of about $3500.

In May The Australian Energy Regulator revealed wholesale electricity prices in Queensland had quadrupled in the first three months of the year compared to the same time in 2021.

That means in regional Queensland, where there is just one retailer and those retail prices are regulated, the estimation is power bills will increase by 9.2 per cent, or around $119 each year, according to a report by the Queensland Competition Authority.

It reported typical customers on the main small business tariff were expected to pay around 10.2 per cent or about $215 more for their electricity in 2022–23.

While Premier Annastacia Palaszczuk introduced a $175 rebate on electricity bills for Queenslanders this year, butcher Mr Dagg said its effects would be negligible compared to the rising costs of living.

His industry was already facing rising costs for meat, and suppliers are being forced to pass on the costs of fuel for transportation.

“And they’re all running fridges so when the electricity prices go up, it’s all going to get added on and at some point to make money, we have to add it on as well,” Mr Dagg said.

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“That $175 is nothing, if your food costs are going up $100 a week, it’s small in the big scheme of things.”

Mr Dagg said small businesses like his would have no choice but to pass costs on to customers or risk their reputations.

“We can’t afford to cut costs anywhere because it’s quality assurance for the customer,” he said.

“This place has been here since 1926, it’s been a longstanding part of the community and we try our best to work with people to keep the costs low and affordable, but it’s getting harder and harder.

“Your hand is forced, if you don’t pass (the costs) on you won’t survive, yet the only way this place has survived is by looking after the people.

“Now all we can do is just make sure our quality doesn’t drop and our service stays the same, but the fact of the matter is, the prices are still going up and we have to pass them on.”

He said he would like to see more government rebates so businesses could upgrade equipment that would consume less energy.

Originally published as Queensland power price rise to hurt Cairns businesses fearing reputation and quality damage