Rising Energy Costs Squeeze Australian Businesses
Australian businesses are facing a difficult situation as rising energy costs put pressure on their bottom lines. This is particularly challenging for businesses that rely heavily on electricity, such as bakeries and ice cream manufacturers.
Vili's bakery, a family-owned business in Adelaide, is facing a 22% increase in its energy costs, which will add over $100,000 to its annual expenses. The bakery has no choice but to pass on some of these costs to customers, raising the price of its pies by 25 cents.
Golden North Ice Cream, another family-owned business based in South Australia, is also facing a significant increase in its energy costs. The company's new electricity contract resulted in a 50% increase in its power bills, adding $197,000 to its annual expenses. Unlike Vili's, Golden North cannot pass on these costs to customers due to the competitive nature of the ice cream market.
The rising cost of energy is a major challenge for Australian businesses. The government is working to address this issue by investing in renewable energy and putting a price cap on gas. However, more needs to be done to ensure that businesses have access to affordable and reliable energy.
Australian businesses are facing rising energy costs.
This is particularly challenging for businesses that rely heavily on electricity.
Vili's bakery is facing a 22% increase in its energy costs.
Golden North Ice Cream is facing a 50% increase in its energy costs.
The government is working to address this issue by investing in renewable energy and putting a price cap on gas.
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