Business leaders call for energy price cuts

Businesses and climate groups have urged the Government to act to cut electricity prices to free up investment in decarbonisation.

In a joint letter to Chancellor Rachel Reeves, groups including Green Alliance, E3G, Aldersgate Group, and UK Steel have called for policy costs to move away from electricity bills and into general taxation.

They estimate this would cut business energy costs by up to 15% and household bills by up to £370 per year.

The letter said the move would also enable the Government to recover costs more progressively, with these charges disproportionately impacting electricity users, including low-income households and businesses that are struggling to compete internationally.

“This change would also strongly align with the government’s growth mission by improving UK industry’s global competitiveness and freeing up capital for investment in energy efficiency and low carbon technologies,” it said.