What utility challenges mean for businesses
Companies have been caught between a rock and a hard place in recent times with the increasingly worrying energy crisis and the uncertainty of the coronavirus pandemic. The government has recently paid out £1 Billion to businesses across the country to help protect them from further restrictions and low footfall due to high omicron case numbers. However, most businesses do not feel that their fair share is enough to help cover increasing utility costs.
Annamarie Andrew, a publican, said the £6,000 one-off payment to businesses “won’t even cover my utilities for a month”.
Highlighting the necessity of government help and guidance to companies up and down the UK.
Despite this, Boris Johnson has announced that he plans to increase National Insurance in 2022, meaning that already struggling companies will be hit with more price increases throughout 2022.
In response to soaring wholesale prices that are driving dozens of energy companies out of business, Energy UK is calling on the government to intervene to help reduce bills. They have met with the government and have dealt with the high demands of concerned customers who are still uncertain of the nature of the energy crisis.
The wholesale price of gas has quadrupled since January, and the price of electricity has more than tripled. Which we imagine has caused reasonable distress for homeowners and business owners alike. By April 2022, wholesale energy prices could increase by 50% more, and we will continue to offer support to our customers throughout the year as we gather more information about the escalating disaster.
What this means for you and your company is there will be rising costs to your energy bills, in and out of your home meaning your business will be affected as well. Energy UK is committed to meeting with the government to make sure no one misses out. In addition, there are tireless efforts being made by service providers who want to help offer support for companies since the government is helping less and less.
Since we are advocators for green energy, we believe the best way to solve this issue is by switching to renewable energy, eliminating the need for outdated gas resources. Gas has been the biggest contributor to the energy crisis as most of the finite resources are controlled by a select few companies, such as those in Russia. With those in Europe confronting the current crisis, the resource makes up a fifth of the continent’s power supply.
President Vladamir Putin has faced criticism from European politicians for limiting gas supplies to pressure the continent to approve a new gas pipeline, however, this is not proven.
Due to this speculation, it is likely the gas supply chain is to be blamed for the current predicament Europe has found itself in. However, it is believed that the UK uses more gas than coal, so the transition may still take some time. But we want to reassure companies of big and small alike that the transition to green energy is taking place, and that the problem shouldn’t last for decades.
No matter if you run your business from home or have a commercial property on a business tariff, your energy bills will likely increase in the coming months.
Our experts understand the turbulent nature of the energy market and the utilities businesses heavily rely on.
Unfortunately, the biggest contributor to company struggles regarding their utility bills is the pandemic, exacerbating issues such as staff shortages and little to no relief from the government as stay-at-home mandates dominated the 2020 working environment.
Since the need for more office space is competing with people’s homes, many businesses have had to make tough decisions or face bankruptcy in the last two years. The added pressure of the energy crisis and the uncertainty of the latest case numbers are showing that many enterprises are facing more issues yet again. This is also due to the increase in lack of funding from the government as they try to navigate a pandemic-free society, despite the fact we are not out of the woods yet.
Other sectors such as the travel industry have taken a lot of the brunt of the pandemic’s issues with being less environmentally friendly than other sectors, while trying to navigate many different COVID-19 restrictions in various countries, they also experience staff shortages and revenue losses.
It is no surprise that many industries and businesses are going through a hard time at the moment, we want to reassure you that you can get the help you need to keep your energy bills down.
What we can do to help?
There are a number of services we can provide for your business from our experts that can help you navigate this difficult period for running your company and its utilities. With our recommendations, you will have the assurance that your energy supplier will not go out of business, contrary to some other companies we’ve witnessed go out of business in recent months.
We can offer you companies that mostly use renewable energy as we understand the importance of keeping on top of your energy sources and knowing where they come from has never been so vital. The providers we suggest and compare against each other usually have tariffs and billing to suit your needs, as we know many businesses pay excess on their bills, an issue we want to fix for you.
Whatever issues you are facing as a commercial or industrial business owner, we want to keep you informed on any changes to your utility bills. We will continue to use our industry expertise to offer you guidance and the best deals meaning you will not have to worry about your utility bills.
Facts and figures are from https://ig.ft.com/europes-gas-crisis-pipelines-explainer/