Worried about how the carbon tax will affect your new business? The Federal GovernmentÍs carbon tax is expected to begin mid-year and the impact is expected to result in higher energy costs to business.
Val Duncan, CEO of Energy Action said, “Energy Action expects energy costs to increase by at least 10 percent for most business.
“ItÍs up to businesses to start thinking about what this change to their cost base will mean and how to mitigate it.”
So what can you do? Consider the following five points:
- Audit and establish benchmarks on your use.
This lets businesses begin to forecast and assess how the rise in costs will affect their business. Establishing a benchmark to measure the impact of cost mitigation strategies against current use helps pinpoint the most effective tactics.
- Understand exposure to rising costs.
Calculate how the carbon tax will impact your business over a three year period using AustraliaÍs free carbon adjustment calculator designed especially for businesses, go to www.energyaction.com.au.
- Identify simple opportunities to reduce energy.
Businesses should consider policies and procedures to ensure they reduce power. Computers, monitors and printers are a good start.
- Investigate energy efficient upgrades.
Consider upgrading to more energy efficient lighting or new energy efficient equipment that will deliver an ongoing cost reduction and may also increase business productivity and efficiency.
- Secure the best value and most suited energy contract for your business needs.
There are a variety of services available to businesses that provide alternative procurement strategies, such as reverse auction, ideally suited to electricity procurement. The Australian Energy Exchange, a service run by Energy Action, lets energy suppliers competitively bid live against one another to supply your businessÍ energy on a fixed term contract. Since deregulation, there are many competitive retailers willing to provide a price based on business specific energy requirements.