Best News Network

UK Firms See Energy Costs Doubling When Government Support Ends

Article content

(Bloomberg) — UK businesses expect energy costs to more than double next year when a government support package comes to an end.

Article content

A survey of 700 firms by the Confederation of British Industry shows companies are bracing for a jump in bills when the government winds up assistance at the end of March, leaving them exposed to rising wholesale costs.

Article content

“The high cost of energy is dominating the decisions that businesses are making each and every day,” Matthew Fell, the CBI’s chief policy director, said Thursday. “There are no easy answers in all this, but the government will have to keep supporting the most vulnerable firms,” particularly small and medium-sized businesses.

Companies’ energy bills could soar more than 150% once the state help is withdrawn, according to the CBI survey. The Treasury’s multibillion-pound package for businesses has capped wholesale costs since October, but only a few energy-intensive industries will continue to receive the support from April. Government officials have committed to providing some form of assistance after that, but firms don’t yet know whether they’ll qualify, the CBI said.

Article content

Along with the Energy Bill Relief Scheme, the government is funding a £6 billion ($7.3 billion) program to improve energy efficiency, seeing it as a way to reduce bills and curb reliance on imports. Yet past energy efficiency campaigns have achieved little success, and rarely cut companies’ costs immediately.

The UK is among countries across Europe grappling with surging energy prices after Russia’s invasion of Ukraine squeezed gas supplies. Treasury support has shielded firms from major financial losses and saved many from collapse, prompting fears that its withdrawal will leave some in an untenable position.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.