Queensland business to be slugged with higher energy costs
23 December
Chamber of Commerce & Industry Queensland (CCIQ) has expressed serious concern at the Queensland Competition Authority's (QCA) decision to recommend an electricity price rise of 13.8 per cent from July 2010 following three consecutive years of energy price rises.
CCIQ President David Goodwin said the latest draft decision on the Benchmark Retail Cost Index released by the QCA threatens to further erode business viability in Queensland.
"The recommendation by the QCA to raise electricity prices by 13.8 per cent will represent an increase of more than $250 on the average electricity bill," Mr Goodwin said.
"This is a cost Queensland businesses cannot afford.
"Businesses across the state are struggling to recover from the economic downturn and at the same time are dealing with a raft of cost increases resulting from the State Budget."
The decision by the QCA comes on the back of three consecutive years of energy prices equating to nearly 33 per cent over a three year period.
"Electricity is an essential input into nearly every good or service so its price is a key influence on the competitiveness of Queensland businesses," Mr Goodwin said.
"Falling revenues and price sensitive customers mean many businesses will not be in a position to pass on higher costs to their customers, therefore placing even greater costs on already compressed profit margins."
Mr Goodwin said the business community fought hard to reject the Australian Government's Carbon Pollution Reduction Scheme, estimated to add a further 18 per cent to electricity prices, and it was unfair to hike up costs now.
"The QCA continues to bow to the demands of electricity retailers by recommending its fourth consecutive electricity price increase," Mr Goodwin said.
"If the State Government is serious about keeping Queenslanders employed and the economy on track, they will need to ensure no further unnecessary pressure or costs are forced on struggling businesses.
"Business can only take so much pressure before they will be forced to make some very hard decisions about employment levels and ongoing viability."
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