Talk today of a national crisis of soaring UK energy prices for domestic users and calls for government intervention highlights the significant issues that have been affecting business and commercial sectors throughout 2021.
Domestic energy bills could be potentially rising by 50 per cent in the spring and that has prompted the energy industry to describe it as a national crisis.
Emma Pinchbeck from Energy UK speaking on the BBC Radio Four Today programme this morning warned that domestic energy prices will rise by between 45 per cent and 50 per cent in the spring. She has called for the Treasury to intervene as others have in Europe.
The price cap for domestic users was set at a record level in October and will be increased significantly again in April, enabling energy suppliers to pass on some of the extra costs they have been incurring to their customers. There is no price cap to protect businesses which have borne the brunt of the fluctuating energy markets this year.
We have seen the significant impact of the volatility of gas and energy prices on business and commercial clients throughout this year. The loss of high profile suppliers - like CNG and many others - and the significant increases in costs, often five or 10 times what business had been paying previously, have had often dramatic effects.
While there has been a lot of focus on energy suppliers going out of business there has been less of a spotlight shone on the impact that has had on their business customers. Those that have had to renegotiate contracts at massively increased costs.
The perception often seems to be that business customers are not human victims of the unpredictability of the market. But for some the financial hit of new energy prices is very significant, reducing investment in new opportunities or new people and a scaling back of ambitions to meet new costs.
It would seem that 2022 is going to be financially painful for domestic energy users, and it doesn’t look any better for commercial and business energy users either.
We will still give you the best advice and find the best deal available for your energy needs. Talk to us if you want to manage the extra costs as well as you can.