UK businesses face abrupt rise in energy bills

July 30, 2010 - PRLog -- The Conservative-Liberal Democrat coalition published what it said was the first yearly estimate of the impact of energy and climate change policies on households and businesses bills. The comprehensive plan comes as a government attempt to cut carbon emissions and end Britain's dependence on risky oil and gas imports.

The estimate shows that compared to energy bills with no government actions, combined annual gas and electricity costs for households would rise only £13 by 2020, but those for businesses would increase by hundreds of pounds a year because of businesses obtaining less benefit from energy-efficiency measures available to households.

The estimate of the impact on energy bills came alongside the first annual energy statement in July 2010, as previously reported by Envido. It sets out DECC’s latest assessment of the impact of energy and climate change policies on gas and electricity prices and bills, and updates analysis that was previously published in July 2009.

The CBI is concerned that mooted government ambitions for a higher target for renewable energy would push energy bills even higher

The publication of the impact of Energy and Climate Change policies on energy bills was welcomed by many groups and businesses involved in supplying and financing low-carbon power. However there were widespread concerns about continuing lack of detail, and that progress would be held back by a raft of new consultations and reviews of individual initiatives. This includes the promise to install "smart meters" in every home and testing new carbon capture and storage technologies. Funding for many policies announced today will also depend on the outcome of a tough autumn spending review.

The Confederation of British Industry (CBI), in response to big projected increases in energy bills, said that while business accepted there would be increased costs in energy bills, it was concerned that mooted government ambitions for a higher target for renewable energy would push energy prices even higher. The CBI urged ministers to help high energy users who were competing in international markets, such as steel companies. Matthew Farrow, the CBI's head of energy, said that other businesses could pass on the higher energy bills to customers.

According to Huhne, the projections assumed fossil fuel prices remain level at approximately US$80 (£51.46) a barrel of oil. Business energy bills would rise by less - and domestic bills be cut - if oil prices rose by the much higher estimates of the International Energy Agency or the US government, because of energy efficiency policies.

One of the first steps in taking control of the energy bills of your organisation is to understand the energy use within their premises by undertaking an Energy Assessment. This will help you identify the opportunities for improving energy efficiency. Envido’s Energy Assessors will assess current performance and identify priority areas for action, with the best return.

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Envido are the UK’s leading provider of energy, carbon and sustainability solutions for private and public sector organisations.

We help our clients reduce their business carbon emissions - helping them to comply with climate change legislation and save money at the same time.

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