Businesses face steep rise in costs

The conflict in the Middle East has seen business energy costs rise 25% since February, as wholesale prices continue to push higher.

According to Cornwall Energy, a typical average 12-month electricity contract for small industrial and commercial (I&C) businesses, such as a larger retail and leisure site or small manufacturer site – would now cost an average £638,500, a rise of 25%.

Gas costs for such businesses have also risen by around 25% to £1.15m. On top of wholesale prices, businesses are facing increases in third party charges.

Although there is some Government support, the report said only a small number of energy-intensive industries qualify. Some 90% of business energy consumption is from businesses that have seen no support at all on their policy costs.

Jacob Briggs, Energy Users Lead at Cornwall Insight, said: “With no end to the conflict in sight, and this summer’s heatwave also pushing up demand, businesses renewing contracts this year are facing a tougher market than they might have expected.”