In 2023-24, Energy Consumers Australia commissioned Small Biz Matters to conduct research into how small businesses engage with the energy sector and how energy policy can better support them. The project also asked how those who support small businesses (advisors, industry associations, peak bodies and business leaders) advocate for small business in the policy space.
Put simply, the project found that small businesses need power over their power.
After conducting 30 research interviews, four main barriers emerged that all small businesses share when it comes to decarbonising, engaging in and benefiting from government energy policies:
- CHOICE: Small businesses have less control over their energy choices than many households.
- COST: The cost of doing business is tightening business profits.
- TIME: Small businesses face time constraints when making significant changes.
- ACCESS TO INFORMATION: There is a lack of suitable information for small businesses.
Recommendations
The report found three main actions to support small businesses better manage their energy:
- Businesses need the right information, at the right time, from trusted sources. Governments should develop clear advice and tailored, relatable communications that take account of the diversity within the small business community and are delivered through trusted pathways.
- Regulatory frameworks should consider the diversity of small businesses. Governments should develop fit for purpose regulation working with small business representative bodies, particularly in the areas of Environmental, Social and Governance (ESG) matters, embedded networks, and commercial leasing regulations.
- Governments should provide appropriate options of practical financial assistance for small businesses to transition their energy use which considers the different needs of the small business sector.