Higher energy costs could see businesses fail with the impact felt across the economy, according to analysts.
Many firms will see their energy bills rocket when new contracts are negotiated in October according to data from Cornwall Insight. It warned some will face bills five times their current price, as concerns over Russian gas supply, tight electricity markets in Europe, and a global disruption to Liquified Natural Gas see prices spike.
Robert Buckley of Cornwall Insight said: “Business energy prices have climbed considerably in the past 15 months, and they stand on the verge of another significant steep uplift when new contracts come in to place for the period from 1 October.
“Logic dictates that there can only be so long that so many businesses can pay so much more for their energy without knock-on consequences for themselves, their suppliers, and the wider economy.”
Buckley said although there had been significant focus on the impact of rising bills on households there has been “strikingly little” said about the affordability of business energy bills.
“We must think much harder about what this energy crisis is doing to business. This is not only to ensure we don’t see loss of output, but so we don’t see companies with heritage, roots in their communities and otherwise good prospects washed away,” he added.