In the face of rising costs that challenge their survival, businesses in Australia are bracing for a grim forecast on energy prices in 2023. Will transitioning to renewable energy be their lifeline?
The recent draft default market offer (DMO) from the Australian Energy Regulator (AER) hints at a record-breaking energy price surge for small businesses along the Eastern seaboard. Simultaneously, the draft Victorian default offer (VDO) indicates a staggering price surge of 33.2% for small businesses in Victoria. This unusual occurrence highlights the fact that the real drivers of Australia's energy prices aren't the retailers. Rather, it is the underlying issues with energy supply.
At the core of Australia's energy crisis is the absence of a viable alternative energy source. Australia's energy largely relies on coal and gas, abundant natural resources within its territory. However, with the current global energy shortage, Australian companies are exporting larger quantities of these resources for a better price. This causes a domestic fuel shortage that has nearly tripled the wholesale price of a megawatt hour since 2020.
The most promising strategy to address Australia's energy crisis is the expedited transition to renewable energy. Despite the urgency, progress has been frustratingly slow, and consumers are shouldering the burden. For instance, the Snowy Mountains hydroelectric project, initially set for completion this year, has been pushed back to 2028. Coupled with the shutdown of coal-fired power stations and other fossil fuel sources, this delay has created a tempest of escalating energy costs.
However, amidst these challenges, businesses have viable options to withstand the storm and combat soaring energy costs. One such option is to explore various energy retailers and plans. By conducting a comprehensive comparison of energy retailers and plans, business owners can ensure they aren't overpaying for their valuable energy.
At Energy Action, we recognize the significance of energy management. We assist businesses in gaining control over their energy expenses and identifying potential savings. Our Energy Experts are perpetually analysing the energy market. We offer a complimentary energy review to help businesses compare their energy plan and pinpoint potential savings through renewable energy procurement.
In conclusion, business owners can still act to alleviate their energy costs amidst the energy crisis. By examining various energy retailers and plans and consulting with energy experts, business owners can uncover potential savings and gain control over their energy bills. Addressing the fundamental energy supply issues in Australia will take time. However, businesses can adopt measures to manage their energy costs in the short term. Indeed, a swift transition to renewable energy is Australia's lifeline and is key to overcoming the current energy crisis.