The impact of the today’s Energy Bill announcement could be “catastrophic” for businesses in the UK.
Energy Forecaster, an online site that provides insight into the future of business energy, said if the increased energy costs for domestic consumers announced by DECC is applied to firms, it will seriously affect businesses.
The initial details of the much-awaited Energy Bill revealed today states energy suppliers would be able to pass on the cost for low carbon energy infrastructure to customers. This would mean an increase from this year’s £2.35 billion to £10 billion by 2020, which DECC estimated would add around 7% to consumer bills.
James Constant, Chair of EnergyForecaster.co.uk said: “The impact of these increased costs will be a serious concern for businesses if it is applied to them. While the exact rise to business energy bills is currently unknown, we predict the Energy Bill will continually push bills up for businesses over the next decade. Our most recent Business Energy Barometer showed that as many as up to 300,000 companies could go out of business if energy bills continue to rise by 15%/annum, which looks increasingly likely due to these increases.
“It is admirable that the government is trying to place a greater importance on environmental goals. However, in the face of economic difficulties, it is questionable whether this is the best way to do it when considering the possible negative impact on businesses in the UK.”
Price comparison site uSwitch.com said although it welcomes the clarity on the impact of future investments of household energy bills, the additional charges following the recent string of gas and electricity price hikes would be a “blow” to consumers.
Ann Robinson, Director of Consumer Policy said: “It’s important that consumers are made aware so they can take action to prepare for higher bills in the future and find information and support on how to limit the impact on their household. However, the fact remains that any additional cost on top of the hikes already seen will be unaffordable for many consumers. The average household energy bill today is already £1,334 a year and this is hurting people.”
November 23rd, 2012 at 4:40 pm
Stop the “Silly Ask” – Repeal the Climate Change Act
In the Energy Bill Chancellor George Osborne has taken the first steps towards repeal the Climate Change Act, by delaying CO2 targets until after the next general election. I am sure repeal of climate legislation will be a campaign issue which will – for the first time – allow the public to vote ‘for’ or ‘against’ the silly climate law. This is brilliant news. The Chancellor’s pragmatic approach to climate and energy policy is reassuring hardpressed businesses and families.
Osborne is proving himself to be far more liberal than the Libdems, who have become an ideologically driven green cult, which cannot distinguish between right or wrong. Reconsidering CO2 budgets is a victory for common sense. Larger CO2 emitters like China, India and the USA will not pass a climate law. Currently the EU has 20% emissions cuts targets and the UK has 30% – this puts British businesses and jobs at risk due to higher energy bills – this makes no sense at all!
Start decommissioning windfarms
We need a U-turn now. We need to start decommissioning turbines – not building more.
Unfortunately, because of Libdem DECC Minister Ed Davey the Energy Bill has not scrapped costly windfarms yet, adding another £178 to our energy bills. Top climate scientists tell us there is still no evidence for a climatic “tipping point”, but there is one for energy consumers. The public have reached a “tipping point”, whereby they can no longer function in the modern world. The reactionary green “Limits to growth” agenda, supported by the Libdems – which aimed to bring about the collapse of our modern civilisation – has become a reality in this Energy Bill.
Costly windfarms will kill economic growth. If we stick to these silly “Green” energy policies people won’t be able to drive a car to work, or travel by air or rail, because it’s unaffordable. Millions of families have reached the “tipping point” where they have to just turn off gas central heating all together! Enough is enough!
Britain acted foolishly and should never have listened to Friends of the Earth “Big Ask” campaigners for a Climate Change Bill. The “Big Ask” has proven to be an extremely complex, costly, and arrogant “Silly Ask”.
http://www.repealtheact.org.uk
November 23rd, 2012 at 6:04 pm
Greens.Saving the planet.No.
Ruining the country Yes
November 25th, 2012 at 11:53 am
It will be interesting to see if the investments in renewables will actually pay out, i.e. if they lead to flourishing industries. I recently blogged on that: http://energyingermany.com/2012/11/10/green-energy-subsidies-uk-should-look-to-germany-for-cautionary-tale/
November 29th, 2012 at 1:50 pm
OMG – the denialists were quick to respond weren’t they.
While I am all for applying economic sense (long term) I would like to ensure any actions are based on good information.
Could Fay give refences to the sources for her statements;-
“top climate scientists tell us there is still no evidence for a climatic tipping point”
and
“the public have reached a tipping point”
I must have missed them.
January 28th, 2013 at 1:35 pm
This is true. As the days are passing by, the prices of the energy bills are rising like anything. This is the time when we have to look for the alternatives because keeping a check on the consumption is not a permanent solution to the problem. To make homes energy efficient, now there are many methods and techniques available. You just have to spend some bucks initially but in the long run it will be you reaping its benefits.