Launceston Chamber of Commerce members struggling under burden of energy prices

The state government has previously rejected the proposed 2.5 per cent per annum cap on price increases.

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Executive officer for Launceston Chamber of Commerce Will Cassidy said among issues like staff shortages and lower consumer spending, high power prices were perilous for local businesses.

"We've got businesses that are members, and energy prices are one of the top costs to their business," Mr Cassidy said.

"There's no way to cut down on electricity usage for some of these businesses, and they can't pass on the price to consumers.

"Some of our businesses are facing some really big challenges over the next few months, particularly as the weather cools down."

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One chamber member was paying up to $7,000 per quarter for power at the regulated rate, according to Mr Cassidy, which put the business' viability in jeopardy.

Mr Cassidy said the current issues were being felt by businesses of all sizes and across all industries, but the pain was particularly acute for tourism and hospitality operators after several disrupted years during the COVID-19 pandemic.

The Tasmanian Government currently offers interest-free loans of up to $10,000 to Tasmanian households and small businesses for the purchase of energy-efficient products through its Energy Saver Loan Scheme.

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The government also offers concession discounts for eligible Tasmanians, however Mr Cassidy said more needed to be done to help the business sector.

"While interest free loans are good, they are still debts that have to be paid," he said.

"It's still increasing the cost of business, and small and medium businesses can't just keep taking out interest free loans forever.

"Whatever measure that can be put in place to ensure that we're not losing small businesses because of escalating prices is going to be a step in the right direction."

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Opposition leader Rebecca White said imposing a price cap on energy would be a priority for any future state Labor government, as would a reform to TAFE.

"There are a myriad of different problems confronting Tasmania's economy at the moment, and a lot of them are being felt by Tasmania's business community," Ms White said.

"Labor is very committed to working with business to make sure we can address those things.

"Making sure that we support businesses lower their cost of business by capping energy prices...and supporting training and skills pathways with career educators in our schools again, working with our jobs hubs and reforming TAFE."

The state government has rejected opposition calls for a 2.5 per cent cap to energy price increases, with Energy Minister Guy Barnett previously saying the proposal would "drive retailers to the wall" and limit the growth of the state's renewables industry.

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