Spring Budget Fizzles for Energy Sector

Article posted

7th Mar 2024

Read time

2-4 min read


Mollie Pinnington

Looking to pay less on your energy bills?

Get a free quote today

The recent Spring Budget has sparked outrage in the energy sector, with many businesses fearing a harsh summer of soaring energy bills. While the Chancellor unveiled measures to support households, the lack of similar relief for commercial energy users has left industry leaders feeling left out in the cold.

The crux of the issue lies in the expiration of the existing Energy Bill Discount Scheme (EBDS) at the end of March. This scheme provided a buffer against rising wholesale energy prices, offering some much-needed respite for businesses. However, its absence leaves a significant gap, with predictions suggesting energy bills could double for some firms.

Industry bodies like the Federation of Small Businesses (FSB) have expressed disappointment, highlighting the potential for a "sinkhole of financial difficulty" for many companies. Hospitality businesses, already grappling with high costs are particularly worried. Restaurants and leisure centres face the prospect of significantly higher energy costs, potentially forcing them to raise prices or even shutter their doors.

The impact goes beyond immediate financial strain. High energy costs can stifle investment and hinder growth plans. Businesses may be forced to delay expansion or modernisation projects, impacting productivity and competitiveness. This, in turn, could lead to job losses and dampen overall economic activity.

The lack of support for businesses stands in stark contrast to the extension of the Energy Price Guarantee for households. While protecting consumers is crucial, neglecting the needs of the commercial sector creates an uneven playing field. Businesses are the backbone of the economy, and their struggles can have a ripple effect throughout society.

So, what's next? The energy sector is urging the government to reconsider its stance. Calls are being made for targeted support packages or an extension of the EBDS in some form. Additionally, there's a push for long-term solutions focused on energy efficiency and a diversified energy mix.

The coming months will be crucial. Without adequate support, businesses face a scorching summer of financial hardship. Only time will tell if the government will heed the industry's warnings and offer a lifeline before the heat becomes unbearable.

If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.