South Australian bakery Vili’s set to raise prices on all products after power bill hike

Iconic South Australian bakery Vili’s is set to raise prices on all their products after a significant increase to their electricity bill.

Beloved South Australian institution Vili’s bakery will be forced to increase the price of its pies and pasties after being hit with an overnight 18 per cent increase to its power bills.

Already struggling with the increased cost of meat and staff wages, the family-owned business, which has been operating for the past 56 years, said the bill hike will severely impact its bottom line.

Vili’s attempted to negotiate a new power contract via a broker and was quoted increases as high as 36 per cent before securing a 18 per cent rise, equating to an extra $8500 per month for electricity.

Vili’s general manager Peter Utry said the cost-of-living crisis was affecting “all aspects of the business”.

Vili's manager Peter Utry said the bakery is facing a huge energy price hike of 18 per cent in one year and will have to raise its product prices. Picture: Roy Vandervegt

“We work hard to minimise our costs, but when your contract ends and you go to market, you can only lock in what is available at that time,” he said.

“Interest rates and inflation are high and a modest wage increase in July, coupled with utility increases and spikes in meat prices means that we have no option but to increase our prices.

“With the wage increases come additional payroll tax charges, which amount to 4.95 per cent on top of our total wage bill. I find it obscure that businesses are taxed for employing people.”

Vili’s, which employs around 350 staff throughout the business, said they would continue to deliver the “high standards” customers expected from their products.

It comes after drinks manufacturer Nippy’s revealed its monthly electricity bill more than doubled in a year despite the business using fewer power hours.

Opposition Leader Vincent Tarzia said family and small businesses across SA were “really doing it tough” in the current climate.

“Vili’s, Nippy’s, Drakes Supermarkets, Seely International – not only are they loved SA brands, but they employ many thousands of South Australians,” he said.

Vili’s, which employs around 350 staff throughout the business, said they would continue to deliver the “high standards” customers expected from their products. Picture: Roy Vandervegt

“The Labor government must do more to protect small business and jobs. South Australia has the highest electricity prices in the country.

“Couple that with the ramping crisis, the housing crisis, GP payroll taxes and rising grocery bills and we have a recipe for economic disaster.”

Mr Tarzia said a Liberal government would wind back payroll tax in an effort to reduce costs for business.

Treasurer Stephen Mullighan said high electricity prices were the result of policy failures at “both national and state level dating back many years”.

“The state government has no direct control over setting electricity prices, with the structure of energy contracts, including fees, tariffs and any discounts, decided by individual retailers and we encourage businesses to negotiate with their retailers,” he said.

“We are providing more relief to small businesses with grants of up to $50,000 available to help reduce energy bills, under Round 2 of our $154 million Economic Recovery Fund.”

Mr Mullighan said SA was the “lowest taxing state on the mainland”, and the “best place in the nation” to do business, “according to the Business Council of Australia”.

Originally published as South Australian bakery Vili’s set to raise prices on all products after power bill hike