Gippsland power users will see the largest rise in their bills from July, after the Essential Services Commission approved a 9 per cent rise in AusNet Services' default prices.  

Under their powers, the Australian Energy Regulator and the ESC set benchmark electricity prices that act as a backstop for consumers unwilling or unable to haggle with their providers.

Bills for other networks around regional Victoria are set to rise by 3-5 per cent due to increases to wholesale electricity costs, but an AusNet spokesperson said other factors were contributing to Gippsland's price rise. 

"AusNet's network costs have also increased due to higher than forecast inflation, recovery costs associated with storm natural disasters, and incentive scheme reward payments to AusNet," the spokesperson said. 

Gippsland residents and businesses were forced to go without power or rely on generators for weeks last year after severe storms downed trees and transmission lines. 

The AusNet spokesperson added that storms costs were evident last year. 

The price increases come after AusNet paid out historic compensation for power outages during severe storms last year. 

Businesses feel the squeeze

Small business owner in Sale, Raj Singh, said he had already been forced to pass on rising input costs to customers. 

"Because we are a small grocer, and we face real people every day, it's very difficult to tell people things are getting more expensive," he said. 

His Asian grocery store relies on deliveries on from Melbourne, and resurgent petrol prices are already decreasing his margins. 

"Already petrol prices are so high, and everything is contributing to make it more expensive," he said. 

The power price increases come into effect from July 1.