The cost of electricity is a major issue across Australia. As prices in electricity increase, Australian businesses struggle to pay their bills which for some enterprises are thousands of dollars a year more.
Electricity being an expense that neither businesses nor consumers can get around, Australia citizens are alarmed by the current electricity market and are seeking ways to minimize their expenditures so their capacity to be profitable, as opposed to bogged down by monthly debt for electricity bills, can prevail.
New South Wales, Queensland, Victoria, South Australia, Tasmania and the Australian Capital Territory, follow National Electricity Market (NEM) regulations when buying electricity. A wholesale distributor, the NEM was created to offer Australians options when purchasing electricity, so both Australian consumers and commercial buyers of power would not be committed to a relationship with a single vendor.
With prices forecasted to rise so dramatically across the country, however, some wonder if whom they do business with, will make any difference in a market where the prices are high overall.
The fact remains that being educated as to what one's alternatives are, in this changing market, can be useful. Business owners in Australia who are not researching the most recent policies and solutions being provided to them, will not fare as well as those who do. Competition will not guarantee affordability in the Australian energy market, unfortunately. The reforms that businesses would benefit from not yet in place, the most obvious effect of higher operating costs for them, are higher prices for the goods and services they sell to consumers.
As a result of the national outcry regarding doubling and tripling energy expenditures, the present Australian Prime Minister, Julia Gillard, who recently replaced Kevin Rudd, is at the center of a heated debate. Australians expect innovative solutions, not the usual promises of future technological advances that will be rolled out gradually in future decades. The Prime Minister's response to the subject of these exorbitant costs, is that it's the result of poor past policy.
There is no one definitive reason for the cause of this problem, though some seem to believe the price of coal is where to look for an explanation of skyrocketing costs. Since coal production is the basis for the production of energy, objections to coal playing such an important role in the energy infrastructure of the country, will grow louder from businesses in Australia, at the same time that a call for more affordable renewable energy sources, solar and wind, just to name two, will continue.
Traditional sources of power are deep rooted in the cultural and commercial landscape of Australia and those hoping to see relief from higher costs, don't want to rely on major transformations in the broader energy sector which may not happen fast enough to save their businesses from going under. There's a domino effect apparently that the government's creation of a privatized energy market, was supposed to have prevented that is not working. The debate is shrill. The information available on immediate fixes to curb costs is not known by as many business owners as one would hope.
Another electricity price increase hit businesses in Australia this year, to get the best value business electricity, go to energy watch for a better deal.
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