NSW small businesses face annual power bill increase of $500 on average

Small businesses across NSW are bracing for an annual power bill increase of $500 or more, as energy providers plan to hike fees from July 1.

Small businesses across the state are up in arms as they brace their budgets for an annual power bill increase of $500 or more, it can be revealed.

One of the largest power retailers in the country, Origin Energy, will raise its small to medium-sized enterprise electricity rates by an average of 8.3 per cent or $498 from July 1.

NSW businesses may be hit with some of the biggest annual increases for power across the country, with Origin planning to hike natural gas fees by $741 or 8.6 per cent.

It comes after The Saturday Telegraph reported households also face electricity bill increases of up to $300 from August with fellow retailer AGL hiking its rates by 13.5 per cent on average – double the energy rebate offered by the Albanese government.

The new power bill surge comes after years of big energy bill increases including hikes of up to 20 per cent, which have whittled down the government’s election promise to deliver cost-of-living relief.

Fees will increase from July 1 for 2025-2026. Picture: Supplied

According to Energy Consumers Australia, the average annual electricity bill for small and medium businesses in NSW has soared from about $6000 to $8000 since April 2022.

Business NSW chief executive officer Daniel Hunter said the latest hikes were yet “another huge hit for small businesses already struggling”.

“More cash thrown at energy bills means the less businesses have to invest in productivity-improving equipment, get comprehensive insurance or hire that next trainee or apprentice.”

Small to medium businesses are bracing for the power bill increase. Picture: Christian Gilles / NewsWire

Small business owner Naomi Browner, 39, runs a hair and beauty salon in Manly and forks out about $1000 per quarter for electricity, making it her biggest expense apart from wages.

“The big struggle is electricity is already high as it is, if they are putting prices up it stops me from being able to support my team … it’s $500 but that money is a training course for one of my staff or an extra piece of equipment,” Ms Browner said.

Origin general manager for small to medium businesses, Jonathon Mattock, said increasing prices was “never a decision (taken) lightly”.

“Recognising the specific needs of small businesses, we’ve recently launched a range of new offers including an energy plan that provides cheaper electricity during the day, a discounted energy plan for not for profits, and for new start up businesses we cover the costs of their first energy bill,” he said.

It comes after the Australian Energy Regulator determined electricity prices would increase by 0.8 to 8.5 per cent for small business customers in NSW, which serves as the “reference point” for all other market offers.

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Originally published as NSW small businesses face annual power bill increase of $500 on average