ONE Eastern Eyre Peninsula business has been hit with a 100 per cent increase in its electricity bills after electricity providers increased prices from July 1 this year.
Cleve and Wudinna Foodland owner Greg Cook said at the moment he was paying 7.911 cents per kilowatt-hour at peak times and 4.507 cents at off-peak times.
However those costs will more than double to 16.426 cents per kilowatt-hour at peak and 9.839 cents per kilowatt hour at off-peak times next year.
Mr Cook said he purchased the power requirements for his Cleve and Wudinna stores through forward contracts.
“In most cases, we would be advised of the pricing for power anything up to two years in advance and we could lock into a rate for 12 months at a time,” Mr Cook said.
He said retailers had been holding back on power pricing for future contracts and only recently released the information.
“Our current contract expires on December 31 and we have been trying to obtain a price for 2018 and beyond for the last 12 months,” he said.
“The energy retailers would not provide any pricing information until the last month or so.”
Mr Cook said in addition to facing massive increases in power costs, this meant he had less time to shop around for a better price from electricity retailers.
Mr Cook said prices through his current supplier would be increased by 136 per cent for peak times and 143 per cent for off-peak times.
“After a lot of chasing the other retailers in the market, the best price we have found has led to an increase of 107 per cent for peak and 118 for off-peak,” he said.
Mr Cook said the massive increases in electricity prices would likely have an impact on his business but that it was too soon tell just how hard his stores would be hit.
He said he would be monitoring the situation once his new electricity contract begins at the end of the year.