South Australian businesses are facing mounting pressure as energy costs continue to rise. Feedback from the South Australian Business Chamber’s Survey of Business Expectations consistently highlights energy prices and reliability as top concerns for business owners. With insolvencies in the state tripling in the past three years, it’s clear that skyrocketing energy costs are crippling many businesses.
Secure, reliable, and affordable energy is essential to keep SA businesses competitive on a global scale. The South Australian Business Chamber supports the transition to net-zero emissions by 2050 in line with the Paris Agreement, and this must be achieved in the most cost-effective and sustainable way possible. This is why we advocate for a fuel-source neutral approach to ensure that emissions targets are met without placing undue financial strain on businesses.
A key question that must be addressed is whether Australia’s 82% renewables target by 2030 is achievable — and at what cost. Until alternative energy solutions are commercially viable, gas remains a critical backup for renewable energy and an essential component for industries that cannot yet transition to full electrification. The exploration, production, and generation of energy using gas will continue to play a significant role in South Australia’s economy during this transition.
The potential reliability gaps in SA’s electricity supply were highlighted by the recent Australian Energy Market Commission (AEMC) rule change, which allows the SA Government to use two idle power stations at Snuggery and Port Lincoln as a backup in the event of a gas shortage before the delayed NSW interconnector is completed.
The Chamber continues to advocate for transparency in national and state energy policies to ensure strong investment attraction and to provide businesses with clear, consistent information on costs and impacts. Our advocacy includes lodging submissions to government consultations and representing the voice of SA businesses on a range of transmission, distribution and consumer advisory groups for the gas and electricity networks.
South Australian businesses deserve a stable and affordable energy future — one that supports economic growth while delivering on emissions commitments.
We are always keen to discuss how energy costs, reliability and the transition to net-zero are impacting your business. To connect with our Policy Team contact us on 08 8300 0061 or email policy@sabusinesschamber.com.au.
