Surging power bills have crippled leading regional SA businesses as the country’s highest electricity costs send staple agricultural produce prices soaring.
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Nippy’s boss Ben Knispel at his Regency Park warehouse in Adelaide on Monday. Nippy's electricity bill has surged. Picture: RoyVphotography
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Leading regional South Australian businesses have been hit with surging power bills as the country’s highest electricity costs cripple the agriculture industry and send staple produce prices soaring.
In a striking example of an unfolding crisis, iconic firm Nippy’s monthly electricity bill more than doubled in a year despite the drinks manufacturer using fewer power hours.
Other industries have been slugged with bill increases, adding tens of thousands of dollars to overhead costs.
Despite expensive investment in renewable equipment and seasonal producers being in “off seasons”, country owners told how “network charges” still sparked large bills.
Concerned farmers have also been forced to employ special “energy consultants” to help save money.
As a new political row erupted, business chiefs revealed energy costs were among the top concerns for firms desperate to avoid hurting customers in a cost-of-living crisis.
Ben Knispel, joint managing director of the Knispel Group, the company behind the Nippy’s brand, said the increasing rate of electricity was a major concern.
The firm, which has two Riverland factories at Waikerie and Moorook along with a Regency Park warehouse in Adelaide’s northwest, had a “great” multi-year contract end in December 2023.
The company, founded almost 100 years ago and famed for its citrus juices and flavoured milk, was invoiced $51,600 last June for 260,073kw/h of use at its Moorook plant.
This month, its invoice was $109,580.10 – including almost $34,350 of market or network charges – despite using almost 6200 fewer hours.
After spending almost $1m on solar panels – which will cost significant money to repair – energy efficient lighting and special pump equipment, its annual power “spot price” bill is almost $2m.
“It just would be nice if we had reliable power 24 hours a day and grid stability because it’s a mess,” said Mr Knispel, company boss for 10 years who employs more than 200 workers.
“It’s just so frustrating doing the right thing, trying to reduce our footprint.
Mr Knispel said he wanted stability in the market. Pic RoyVphotography
“But it’s all over the place. We’re growing and we’re doing OK but we will look to have price rises, sadly, as we can’t absorb these costs forever.”