Aussie business slapped with $900,000 power bill increase amid cost of living crisis

Nippy’s is a third-generation family business with three manufacturing sites across South Australia supplying juice and milk to Aussies.

On the current three-year electricity plan the business pays $916,000 a year but that’s about to expire.

The latest quote hit the business with a $1.7 million per year electricity contract which is an increase of 95 per cent.

Joint Managing Director at Nippys Ben Knispel told 2GB’s Ben Fordham the electricity bill quote was a complete shock but comes as a raft of costs continue rising.

“It’s scary,” he said.

“Our current bill is a three-year contract so we have the current year to try and work out if we can find another offer.”

Knispel said on top the electricity increases, other costs are also going up, including milk coming from the farms which jumped by 25 per cent.

“We have had three price rises in the last 18 months,” he said.

But on top of now having to find an extra $900,000 to pay for the electricity the business is worried about passing on the costs to customers to cover the burden.

“I’m nervous about how much customers are willing to pay,” he said.

Knispel said Nippy’s has “no choice” but to pass on the costs.

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“We’ll have to find the money somewhere and unfortunately some of it will come from another price rise,” he added.

Liberal MP Tony Pasin said it is inevitable the costs businesses are slapped with will be passed on to the consumer.

”Prices are going to have to keep going up,” he said.

“When people go to the grocery store they’re not getting far down the aisle before they run out of cash.”

But he warned this may drive customers away from Australian businesses.

“Australian manufacturers need to be careful because ultimately people will look for alternatives, which are juice and drinks made in other countries,” he said.

“Australians are going to find themselves in a situation where they can’t buy Aussie grown, Aussie made.

“That would be a travesty.”

It comes as inflation has hit a historic high at 7.8 per cent, the war in Ukraine continues to impact supply, but government intervention to introduce a gas cap to try and lower prices.