Shadow Minister Media Releases
Regional Businesses Paying More For Electricity Than City Counterparts ( 23/05/2008)
Shadow Minister for Small Business & Regulatory Reform Don Page today expressed concern over the findings of a KPMG report which shows regional businesses pay up to 51 per cent more for electricity costs than their city counterparts.
Mr Page said the report states the cost of electricity is higher in regional areas because they are serving smaller populations.
“The KPMG report is further evidence of how tough regional areas are doing it. If the Iemma Government is serious about decentralising, it needs to address cost differentials such as this,” Mr Page said.
“Regional NSW is crying out for increased services and jobs. Yet this report shows that many regional businesses will be inclined move to more cost effective areas,” he said.
“But sadly the city-centric Iemma Labor Government has little interest in looking out for communities outside Sydney.”
Mr Page said the report found the gap between urban and regional costs for large power users was greatest in NSW – highlighting the Iemma Labor Government’s failure to support regional NSW.
“Regional businesses are paying up to $100,000 more than their city counterparts, and, in most cases, regional businesses are absorbing the extra electricity costs because they are unable to pass them onto the consumer,” Mr Page said.
“I have further concerns that electricity costs in regional areas are likely to increase even more with privatisation of the electricity industry due to economies of scale – that is why the NSW Liberal/Nationals safeguards are vital if the power sale goes ahead.
“The Iemma Government have long been ignoring the regions and I call on them to start providing greater assistance to the engine room of NSW,” Mr Page said.
