Business energy costs could rise as much as 81% over the next decade, according to a new forecast by market analysts Waters Wye Associates. It predicts that by 2021, fuel bills in the UK commerce and public sector will rise from from £10.3 billion to £18.7 billion a year.
Power Efficiency, which commissioned the research for its ‘Energy Price Challenge’ report, said there are two “key drivers” behind this: the rising price of fossil fuels from international markets and costs connected with the Government’s low carbon policies.
Mark Callaway, energy markets director at Power Efficiency, said: “After a long period of deceptively low energy costs, we have emerged into an era of high and rising prices that have made effective energy management a board-level issue.”
He added: “It is critical that organisations have energy management strategies in place now, for the next decade to protect profitability and defend budgets through a period of rising energy inflation.”
The report predicts cost rises in the Climate Change Levy, which it expects to increase in line with inflation; the Carbon Reduction Commitment, which is expected to rise with the EU Carbon Price; and also the Renewables Obligation.