SOARING energy costs are putting the squeeze on Melton traders already dealing with slim profit margins.
A new St Vincent dePaul report reveals that annual electricity costs in the north-west have risen by an average of $181 since January last year. In Melton, costs have increased by an average of $184. The report was released days before Prime Minister Julia Gillard gave state governments until the end of the year to report on how to curb price increases.
A spokesman for Melton’s Airport Doors said many local business owners were “feeling the pinch”.
The spokesman for the business, which has been making doors for more than 30 years, said energy costs, steel prices and delivery costs were all hurting.
“The economy is not as good as it used to be and businesses are finding it hard, with exorbitant costs, to keep employing the same amount of people.”
St Vincent de Paul social policy manager Gavin Dufty said pensioners and families were also finding things tough. “We’ve seen cases where struggling parents will feed their children and not themselves to try and save costs to pay bills,” he said.
“Pensioners might switch off heating and watch TV under their doonas or not purchase prescription medication to cover the costs.”
Mr Dufty said residents needed to be aware that while they couldn’t stop price rises, they could apply for hardship programs through their power company.
The Energy Networks Association says power charges in Victoria are increasing due to ageing infrastructure, higher borrowing costs after the global financial crisis and pressure to comply with safety and statutory obligations.
Calling for pricing structure reform, the association said there was higher demand in Melbourne’s west as power companies pushed the capacity of networks to meet growing demand for energy at peak times.
A spokesman for north-west supplier Jemena said: “The way we use energy – with larger houses, air-conditioning, electronic appliances – and where we get it from means the nature and costs of network investment are also increasing.”
