Due to political issues that have affected the UK over the past year including the effects of sky-high energy prices, manufacturing businesses are one industry that is struggling with the effects of this.
This has made investing in the industry a lot less attractive to foreign investment as the country’s situation is damaging to business confidence.
Businesses within this industry are expecting their energy costs to increase this year with many predicting they may have to make other cuts to survive this year, with energy being one of the main contributors to this despite the government support.
With the UK going through a period of low energy security the threat of blackouts is becoming increasingly higher. More and more firms are becoming worried about how this could also affect business.
Since the energy support that businesses are going to receive is going to be a lot less generous, this will not shield companies from the worst of the increases. Businesses that have a high energy exposure but do not fall under the characteristic of being energy intensive are going to feel the price shock worse as they are not going to have much to fall back on.
Due to this many business leaders have said the government need to ensure that all major users of energy are included in any extension of the govt support as this should go further than just those businesses that are classed as energy intensive.
Extra energy support for energy-intensive industries
The government have recently announced new support for non-domestic energy customers. The Energy Bill Discount Scheme will come into effect on all business energy contracts from 1St April 2022. The government have recognised that businesses that are trade and energy-intensive will need more support, therefore they will have a higher discount on their energy bills.
The maximum discount and price threshold for these sectors are:
Electricity - £89/ MWh with a price threshold of £185/MWh
Gas - £40/MWh with a price threshold of £99/ MWh
Check whether your business could be eligible for the ETII scheme here.
Start your energy renewals as early as possible.
If you are in an energy-intensive industry you need to be making sure you stay on top of energy renewals and when the best time for you to sign is.
If you do not have the time or recourses for this we have a team of energy-expert account managers that can find you the best quote on the market. Get a quote here today or contact us for more information on your energy bills.
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