And the organisation is urging the government to help fund more services and programs to help the struggling sector to meet the challenges of the next few years.
The survey, Unfinished Business: Putting small business energy policy back on the table, contains an in-depth analysis of businesses and their efforts to reach net zero and reduce energy costs amid a cost-of-doing business crunch.
It found that many small businesses are feeling abandoned by state and federal governments in accessing support and advice regarding their surging gas and electricity prices as well as the steps they need to take to reach the net zero target, which has been implemented nationwide.
The Business NSW report, funded by Energy Consumers Australia’s Grants Program, found significant shortcomings in the advice and support businesses receive.
“The places businesses are looking to for help turn out to be the worst at giving it,” Business NSW executive director David Harding said.
“Most businesses are looking for help from energy companies and online, yet they rate those as providing the worst advice.
“Meanwhile, only 15 per cent of businesses get help from energy consultants and peak bodies, which are the best-rated sources of advice.”
The report found that one in five businesses still find the process of switching providers difficult or extremely difficult, showing efforts to simplify energy markets for businesses have further to go.
With NSW energy prices soaring, Mr Harding said businesses and the wider public must be better informed about the steps they can take.
“I’m not sure the public quite understands how much of an impact these price rises will have on their favourite café, florist, supermarket or hairdresser,” Mr Harding said.
“A 56 per cent increase in energy costs — together with staff shortages, interest rate rises and red tape — has the potential to sink struggling businesses.
“The federal government needs to combine last week’s bill relief measures with advice that helps businesses to deal with the complex web of the energy market.”
Business NSW advises members on energy-saving measures such as LED lights, solar panels, better use of data and sensing and monitoring technology, and use of more energy-efficient appliances.
Until August 2022, Business NSW was further supported to offer this advice by the federal government via the Business Energy Advice Program (BEAP).
The BEAP reached 7 per cent of eligible SMEs across Australia during its three years of operation.
Business NSW said to reach more businesses in the years ahead requires a new program with an expanded remit and with resourcing to maintain advice that is free and independent.
The survey also indicated an appetite among businesses to move more quickly to reduce their emissions.
However, 51 per cent of businesses that have set themselves the target of reaching net zero by a specific date also said they have no awareness of the implications of net zero or do not understand how their business specifically will be affected.
“Businesses want to do the right thing, but there is an emerging policy black hole when it comes to support for businesses trying to reduce their energy bills and their emissions,” Mr Harding said.
“While governments are implementing the major system changes to bring online more renewable energy, they also need to make sure that energy users have the support they need to make the necessary changes to their own operations.
“If the federal government does not address this issue in a timely manner, we call upon the NSW government to step up and assist in educating the public and businesses about how to reduce emissions, lower energy bills and keep businesses thriving.
“Businesses will be watching closely to see how these critical issues are addressed by both sides of government ahead of the NSW election in March.”
Energy Consumers Australia chief executive Lynne Gallagher said there needs to be much more done to help small-business owners understand and make the necessary changes that lie ahead. “This research, grounded in their experiences, their needs and their voices, is the best way to start that process,” she said.
“Energy Consumers Australia is proud to have funded this report through our grants program and to support the recommendations the report has made from the insights gathered.”
