The new energy secretary has admitted that the government's proposed mandate for oil and gas licensing in the North Sea may not necessarily lead to a reduction in businesses' energy bills.
This admission has sparked concerns among companies, that are already grappling with soaring energy costs.
The mandate aims to boost domestic oil and gas production to address the ongoing energy crisis. However, the energy secretary's comments suggest that the immediate impact on businesses' energy bills may be limited.
"The government is committed to ensuring that businesses have access to affordable and secure energy supplies," the energy secretary stated. "However, it is important to be realistic about the impact of the licensing mandate. It will take time for new production to come online, and there is no guarantee that it will lead to an immediate fall in prices."
Some industry experts have expressed scepticism about the energy secretary's admission, arguing that the government underestimates the potential benefits of increased domestic production.
They also point to the fact that businesses are already facing significant financial pressures due to rising energy costs.
"Businesses are already struggling to make ends meet, and they need any relief they can get," said one industry expert. "Increased domestic production could help to ease the pressure on energy prices."
The government has defended the mandate, arguing that it is necessary to strengthen the UK's energy security and reduce reliance on foreign imports. However, businesses remain concerned about the potential impact on their energy bills.
"The government needs to do more to address the immediate concerns of businesses," said one business owner. "We need to see a reduction in energy costs as soon as possible, and we need to be confident that the government is taking action to secure our energy supply."
The government is expected to provide more details about the licensing mandate in the coming weeks. Businesses will be closely watching to see how the mandate is implemented and whether it has the desired impact on energy prices.
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