Shocking number of businesses feeling energy pinch

Soaring energy prices and supply issues is having a concerning impact on Victorian businesses who are struggling to make sense of the complex power market.

Almost one in two employers say the east-coast energy crisis is having an impact on their business, according to a new survey.

It also reveals most companies struggle to understand the complex power market.

Soaring energy prices and recent supply threats affected every transport and warehousing company surveyed by the Victorian Chamber of Commerce and Industry, as well as 80 per cent of accommodation and food services.

Overall, 57 per cent of VECCI members surveyed were highly concerned about rising electricity prices, while 42 per cent were highly concerned about skyrocketing gas charges.

Almost a third of employers said they expected to make changes to planned investments in the next two months due to energy constraints, ­including all transport businesses involved in the ­research and 40 per cent of construction companies.

The report comes after the Herald Sun revealed last week industry leaders on the front line of the crisis were bracing for widespread business closures.

The wholesale gas price ­exploded from $10 to $800 a ­gigajoule in June before a $40 cap was imposed – still at least four times higher than what businesses were paying last year – while electricity retailers will lift prices by at least 5 per cent from August.

Eric Yazici owns Monti in Albert Park and is finding it hard as costs soar. Picture: Ian Currie

VECCI chief executive Paul Guerra said the survey revealed “the impact the ­energy crisis is having on Victorian businesses, in particular their levels of confidence and investment as they deal with rising costs and growing ­uncertainty around supply”.

“We need to explore all ­options to alleviate pressure on businesses in the short term while looking at longer-term solutions that will provide certainty and benefits for businesses, the economy and wider community,” Mr Guerra said.

Almost 15 per cent of those surveyed were on market contracts expiring in the next six months, including one in four manufacturing businesses, while a quarter were unsure what sort of deal they had.

The survey found 36 per cent of businesses had low understanding of the energy market – 16 per cent ”very low” – compared with 41 per cent who said they had a moderately strong understanding.

Energy Users Association of Australia chief Andrew Richards told the Herald Sun last week businesses coming off contract soon were “going to walk into what is the mother of all fires”.

Mr Guerra said businesses needed “certainty of supply and certainty of price in the short term”.

“Then we need to seize the opportunity in sectors like ­renewables, waste recovery, carbon technologies and transport that will in turn create new jobs, lower emissions and reduce costs for business and consumers,” he said.

Albert Park restaurant owner Eric Yazici said power bills at his business, Monti, had soared $800 to $4300 in the past quarter.

Mr Yazici said the blow came on top of costs for stock such as fruit, veggies, eggs and milk “going off the roof”.

“We have worn half of it and the other half of running expenses, all across the board, has been pushed back on to the consumers,” he said.

Mr Yazici said the business would continue to absorb more of the costs, instead of imposing a weekend surcharge, because he was conscious that many customers might tighten their purse strings as interest rates continued to rise.