Got net-zero news, project updates, or product launches to share? High business energy bills forecasted to continue.
Wednesday 28 August 2024
Recent findings indicate that business energy expenses are projected to remain 70% higher than pre-crisis levels, casting a grim shadow over small enterprises.
The latest research conducted by Cornwall Insight sheds light on the substantial burden that small businesses like pubs, restaurants, and independent retailers are grappling with. It reveals that these establishments are facing an annual energy bill hike of over £5,000 compared to pre-crisis figures.
According to the Business Energy Cost Forecast study, the situation is expected to worsen from April 2025 to March 2026, indicating a further surge in energy expenses for small businesses.
Despite a slight stabilisation in recent years, energy bills remain significantly elevated compared to the pre-2021 era when small businesses typically spent between £7,000 to £8,000 annually on energy.
Currently, the average electricity bill for a small business stands at a staggering £12,264 per year, a substantial financial strain for enterprises already grappling with economic challenges.
Unlike household energy bills that benefit from a price cap safeguarding against drastic increases, businesses lack this protective measure, leaving them vulnerable to soaring energy costs.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight, expressed his concerns, stating, ‘Our Business Energy Cost forecast highlights that businesses are facing similar challenges as households, with energy bills significantly surpassing historical averages. The current prices, although lower than their peak during the crisis, are still unsustainable for many small businesses fighting to survive in the current economic climate.’
He further elaborated, ‘While the household energy price cap has faced its fair share of criticism, it undeniably offers a level of protection that businesses are devoid of. With the cost-of-living crisis impacting consumer spending and high street businesses, it is imperative for the government to explore avenues to aid enterprises in coping with the escalating energy expenses to prevent further closures.’
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