How VIC small businesses can save $24 million on their energy bill

By Ceyda Erem ·
small-business-owners-making-coffee

As Victoria braces itself for a potential second wave of Covid-19 cases, increased restrictions are set to put a further strain on the state’s small businesses. 

And while things might not have slowed down for the energy industry, there is a way Victorian small businesses can take some of the heat off upcoming bills: switching to a lower market offer. 

New research by the Essential Services Commission (ESC) has revealed that VIC small businesses have the potential to each save $2,400 a year on gas bills just by making the switch.

If 10,000 small businesses did so, they’d collectively save a jaw-dropping $24 million. 

According to the regulator, default gas offers (the plans customers are placed on if they don’t shop around) could be reportedly up to 24% more expensive than discounted offers. 

“This finding shows how important it is to pick up the phone and talk to your energy retailer about their best offer,” said ESC chief executive, John Hamill. 

“Small businesses could be experiencing bill stress during this challenging period and these potential savings could provide some welcome relief.”

Data from the ESC also found that by the end of May, approximately 684 small businesses were receiving payment assistance from their gas retailer and owed an average of $1,441 on their gas account. 

Electricity debts weren’t any better, as a massive 2,488 small businesses owed their retailer an average of $1,141. 

Powershop to offer credits to Victorian hospitality industry

A month ago, Mozo reported on Powershop’s new ‘Power It Forward’ campaign that was set to help small businesses who have been financially impacted by Covid-19 better manage their energy bills. 

Since then, with the help of its customers, the retailer has raised $200,000. Any VIC Powershop small businesses customer who owns a bar, cafe or restaurant will receive a portion of these funds in the form of a credit, equivalent to one month’s worth of electricity usage. 

A further $200 credit is also up for grabs for Victorian households who work in the hospitality industry and make the switch to Powershop

“Due to circumstances beyond their control Victorian hospitality business owners are doing it really tough,” said Powershop’s chief executive, Jason Stein. 

“One way we can make a difference is to lower their operating costs by providing electricity bill relief and we are so pleased to announce that all Victorian Powershop customers who operate a bar, restaurant or cafe are eligible to receive a credit on their account which is approximately equivalent to one month’s usage.” 

Whether you live in Victoria or South Australia, one way to see a difference in your energy bill is to switch to a better value offer. 

Mozo’s free energy comparison tool can help you compare plans in your area, head on over to our energy comparison tool to get started today! 

Ceyda Erem
Ceyda Erem
Money writer

Ceyda Erem is Mozo’s authority on Energy, as well as having broader expertise as a personal finance writer. She loves to put her researching and writing talents into stories that help our readers to make more informed financial choices, whether that’s about finding the best energy deal or writing about the latest sneaky bank tricks. Ceyda has a Bachelor of Arts (major in writing) from Macquarie University.