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Small business feels abandoned when it comes to advice on reducing bills and emissions, NSW research shows.
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SMEs plead for help on energy costs, net zero
21 December 2022
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Small businesses want more support to reach net zero and reduce energy costs says Business NSW, which is urging the government to fund programs to help meet the challenges.
Research by Business NSW found small businesses were feeling abandoned by state and federal governments when it came to advice about energy costs and emissions targets.
Its report, Unfinished Business: Putting small business energy policy back on the table, found businesses needed to be better informed.
“The places businesses are looking to for help turn out to be the worst at giving it,” Business NSW executive director David Harding said.
“Most businesses are looking for help from energy companies and online, yet they rate those as providing the worst advice.
“Meanwhile only 15 per cent of businesses get help from energy consultants and peak bodies, which are the best-rated sources of advice.”
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The report found that one in five businesses still found the process of switching providers difficult or extremely difficult, showing efforts to simplify energy markets had further to go.
Mr Harding said soaring energy prices – with budget projections they would rise 56 per cent over two years – were hitting home.
“I’m not sure the public quite understands how much of an impact these price rises will have on their favourite café, florist, supermarket or hairdresser,” Mr Harding said.
“A 56 per cent increase in energy costs – together with staff shortages, interest rate rises and red tape - has the potential to sink struggling businesses.
“The federal government needs to combine last week’s bill relief measures with advice that helps businesses to deal with the complex web of the energy market.”
Business NSW advises members on energy saving measures such as LED lights, solar panels, better use of data and sensing and monitoring technology, and use of more energy-efficient appliances.
Until August, it was assisted by the federal government via the Business Energy Advice Program, which reached 7 per cent of eligible Australian SMEs during its three years of operation.
Business NSW said to reach more businesses now required a new program with an expanded remit and with resourcing to deliver free and independent advice.
Its survey showed there was an appetite among business to move more quickly to reduce their emissions, with 51 per cent setting a net zero target by a specific date.
However, they had little awareness of the implications of net zero nor an understanding of how their business would be affected.
“Businesses want to do the right thing, but there is an emerging policy black hole when it comes to support for businesses trying to reduce their energy bills and their emissions,” Mr Harding said.
“While governments are implementing the major system changes to bring online more renewable energy, they also need to make sure that energy users have the support they need to make the necessary changes to their own operations.
“If the federal government does not address this issue in a timely manner, we call upon the NSW government to step up and assist in educating the public and businesses about how to reduce emissions, lower energy bills and keep businesses thriving.
“Businesses will be watching closely to see how these critical issues are addressed by both sides of government ahead of the NSW election in March.”
Energy Consumers Australia, which funded the research, said the voices of business had to be heard.
“This research, grounded in their experiences, their needs and their voices, is the best way to start that process,” CEO Lynne Gallagher said.
“Energy Consumers Australia is proud to have funded this report through our grants program and to support the recommendations the report has made from the insights gathered.”
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