Small businesses across Australia are set to face electricity price hikes from July 1, 2025, with varying impacts depending on the state. These increases, largely attributed to rising electricity production and network costs, will add pressure to operational expenses. Below, we break down the key statistics and contributing factors to help businesses stay informed and prepared.
Key Energy Price Changes by State
New South Wales (NSW)
Small businesses connected to the same network will experience an 8.2% rise in electricity costs.
The average annual electricity bill is set to increase by $376, reaching $4,988.
Queensland (QLD)
Small businesses will see a 4.2% rise in electricity bills.
Average annual bills will increase by $178, totalling $4,439.
South Australia (SA)
Small businesses will experience a 6.6% rise in electricity costs.
The average annual bill will increase by $355, reaching $5,707.
Victoria (VIC)
Businesses on the Victorian Default Offer (VDO) will see annual increases between $77 and $128, varying by distribution zone.
Why Are Prices Increasing?
The Australian Energy Regulator (AER) has attributed the recent price hikes to several key factors. One of the primary reasons is the higher electricity production costs, which have been driven by increased wholesale energy prices. These higher costs directly impact consumers and businesses alike. Additionally, rising network costs, which encompass infrastructure maintenance and upgrades, contribute to the overall increase in electricity prices. Another significant factor is the breakdowns in coal-fired power stations, which have led to supply constraints and an increased reliance on alternative energy sources, further driving up costs
What Can Small Businesses Do?
As energy costs continue to rise, small businesses must explore strategies to manage their expenses more effectively. Energy Minister Chris Bowen has recommended that businesses compare energy offers from different providers to secure the best deal possible. By reviewing and assessing available options, businesses can ensure they are on the most cost-effective plan for their needs. Additionally, businesses can consider renewable energy solutions, such as investing in solar power, which can help reduce their reliance on grid electricity and lead to long-term savings. Implementing energy efficiency measures is another effective approach. Simple actions like upgrading to LED lighting, optimising appliance use, and improving overall energy management can result in substantial savings.
The upcoming electricity price increases will add financial pressure to small businesses across Australia. By staying informed and exploring cost-saving solutions, businesses can mitigate some of these rising expenses. Now is the time to assess your energy plan and consider sustainable alternatives to future-proof your business against ongoing energy market fluctuations.
Need assistance navigating these changes? At Choice Energy, we specialise in helping businesses secure competitive energy rates and explore solar solutions. Contact us today to learn how we can help you save on your energy bills.
