More energy costs action urged after Budget

Industry leaders have warned more needs to be done to tackle high business energy costs despite a series of measures announced in the Budget.

Announcements by the Chancellor included more action to move levies from bills and into taxation, with the gas shipper obligation now to be funded directly by Government.

A new cost control framework, to “drive down all aspects of energy bills” will also be implemented to reform the energy market in the longer term.

However, Chief Executive of Energy UK Dhara Vyas said there was scope for Government to go further still by removing Renewable Obligation costs from non-domestic electricity bills.

Stephen Phipson, Chief Executive of manufacturers’ organisation Make UK, said the budget had failed to tackle high industrial energy costs.

“This is having a ruinous effect on investment and requires urgent action,” he warned.