Our advocacy for a plan on how our state will transition to net zero has been backed by a survey of our members, which yielded 503 responses and revealed 86 per cent of businesses believe the move to renewables will impact the quality of their output.

Chamber of Commerce and Industry Chief Executive Paul Guerra said the results showed the transition away from natural gas to other energy sources is the number one concern for Victorian businesses.

“Businesses need access to affordable and reliable energy to continue to operate viably in Victoria and there is great concern that this is not guaranteed through the transition to net zero.”

“The business community supports the transition to net zero but is looking for the reassurance that a mix of energy sources will be available throughout the journey to get there. That requires us to collaborate openly with industry on strategy, planning and investment so we can accelerate our opportunity for Victoria.”

Key findings included:

Cost

Almost half of respondents stated that they won’t need to replace their gas appliances for the next 10-20 years, while asking them to change over appliances from gas to electricity will significantly impact their cost of doing business.

Eighty-one per cent of respondents reported cost as the main barrier to switching from gas to electricity, with more than half of those surveyed saying they can’t move away from natural gas as their business processes rely on it and it cannot be transitioned to another energy source.

Also of concern is 74 per cent of businesses surveyed report they are not planning financially to transition to cleaner energy sources. This could be for a number of reasons, but there is no doubt many businesses are already financially stretched and can’t take on another cost of such magnitude.

• 45 per cent won’t have to change gas appliances in next 10-20 years
• 68 per cent can’t currently switch to renewable gas
• 81 per cent cite cost as main barrier to switching from gas to electricity
• 74 per cent not financially planning to transition to cleaner energy sources

Conditions

The February power outages in Victoria took a heavy toll on business, with 73 per cent of survey respondents forced to close or significantly reduce their operations as a result.

• 73 per cent forced to close or significantly reduce operations during February power outages
• 83 per cent report being pessimistic about current market conditions (15 per cent neutral, two per cent optimistic)
• 52 per cent say a reduction in gas supply/gas shortage will lead to reduced production

Government and policy

Seventy-one per cent believe to reduce the cost of gas, the State Government needs to unlock new Victorian gas supply. Energy policies are the number one concern for Victorian businesses, followed by workforce and taxation.

• 71 per cent want State Government to unlock new Victorian gas supply
• 65 per cent reported energy policy as their biggest concern, followed by 64 per cent workforce and 53 per cent taxation
• 86 per cent believe move to renewables will impact output.

The findings come as the Australian Energy Market Operator (AEMO) warns of gas shortfalls and risk of outages within the next four years in its latest Gas Statement of Opportunities, saying new investment is “urgently needed” to keep up with demand from homes and businesses “for gas-powered electricity generation”.

“Flexible gas-powered electricity generation is an essential component of the energy mix into the future,” AEMO said.

Victorian Chamber advocacy

A Victorian Chamber event recently heard that recent power outages have highlighted the need for a plan that outlines not only Victoria’s journey to net zero emissions, but also ensures energy supply during the transition. It reinforced that every resource should be considered, including those that may be seen as a “compromise”.

The Victorian Chamber undertook a campaign last year, Achieving a Net-Zero Economy: Roadmap for Victorian Businesses, to support businesses’ transition to a net-zero economy. The comprehensive piece of work outlined 25 short-medium and long-term recommendations on how we can reduce energy costs, ensure energy supply and support businesses reach net-zero.