By Parker Mckenzie
A 25 per cent energy price rise is forecast across Victoria, with businesses throughout the Yarra Ranges already feeling the cost pressures.
The Australian Energy Regulator announced on 25 May its final determination for the default market offer, a price safety net that “protects consumers from unjustifiably high prices and applies to household and small business customers,” with wholesale energy prices driving retail electricity prices higher.
Victoria’s Essential Services Commission also confirmed energy prices in the state would rise around 25 per cent.
On 25 May, Climate Change and Energy Minister Chris Bowen said when the AER provided the government with a forecast in 2022, Australians were facing price rises of between 40 and 50 per cent.
“That’s why the Government acted in December to cap coal and gas prices and why we worked with states and territories to deliver up to $3 billion in direct relief for the most vulnerable households and small businesses,” he said.
“In the longer term, we are getting more renewables in the grid through Rewiring the Nation and the Capacity Investment Scheme because the cheapest form of energy is firmed renewable energy and this will take pressure off bills and help shield Australians from volatile international energy prices.”
Opposition Leader Peter Dutton, Casey MP Aaron Violi and Energy Shadow Minister Ted O’Brien visited Aussie Growers Fruit in Seville on Monday 29 May to discuss the impact of rising energy costs for businesses around the Yarra Valley and Dandenong Ranges.
Mr O’Brien said food businesses across the country “are feeling the pain of Labor’s energy bills”.
“This business alone has seen their energy bills jump by $200,000 since Labor has come to office. That’s up to 50 per cent increases in their energy bills,” he said.
“The Coalition put the importance of supply and industry at the centre of its policies.
“We’ve been saying from day one with the Labor Government, we need more supply, more supply, more supply, especially of gas, but instead, the Labor Party has been ideological and they have attacked the gas industry.”
Mr Violi said after talking to local businesses like Aussie Fruit Growers and Yarra Valley Hilltop, they made it clear rising energy prices have already had “a massive impact on businesses in Casey and it is going to get worse.”
“Yarra Valley Hilltop is just one of the hundreds of businesses, particularly in manufacturing and food manufacturing, which are high-energy industries,” he said.
“They are representative of so many manufacturing businesses and I’ve worked in the industry: They use a lot of energy, but their energy bills have gone up over 50 per cent in the last 12 months.”
Mr Violi said the government has failed to live up to promises at the 2022 federal election to reduce power prices.
“The government promised the Australian people 97 times before the election that they would reduce power bills by $275,” he said.
“The Prime Minister promised that reduction 30 times after Russia invaded Ukraine, so he can’t say that the circumstances changed.”
