Many small businesses are not yet aware of the good news coming their way. Small business customers will actually face lower prices and clearer energy bills starting July; however, if they do not manage their bookkeeping and accounting properly, they may not notice the difference and lose the opportunity to use these savings for something more beneficial to their business.
The default market offer policy is expected to save small business customers about $896 depending on their state and energy bills because of the new caps to standing electricity offers. The policy aims to address energy affordability for small businesses but according to business groups, many businesses might not feel the change despite the pressure of increasing prices.
While New South Wales, Queensland and South Australia will follow the national default market offer, Victoria will follow its own state managed default offer. According to Energy and Emissions Reduction minister Angus Taylor, the policy would eliminate the loyalty tax of 800,000 consumers and small businesses. Over 500,000 small business energy customers are expected to save money through this measure and are urged to take advantage of this by managing their bookkeeping and accounting accordingly.
Businesses that require heavy power supply ask for support beyond the default market offer, though. Power prices have doubled over the past few years to over $25,000 for some smaller retailers. The policy requires them to advertise the lowest price available for a particular offer and directly inform customers if their energy prices are changing because of the default market offer. Consumers, on the other hand, are encouraged to shop around for the best electricity deal.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to business, bookkeeping and accounting experts. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.