UK businesses have been warned about a potential rise in the cost of commercial energy after industry watchdog Ofgem announced they are looking to invest £22bn in the country’s energy infrastructure.
The watchdog is expected to advise National Grid (who will be responsible for completing the infrastructure upgrade) how much they are allowed to charge consumers in order to recuperate the costs. It is expected that domestic energy bills will see an increase of up to £15 per year, with businesses seeing a much greater rise.
The move aims to revolutionise the country’s ageing energy infrastructure, and hopes to secure the source of gas and electricity UK consumers and businesses receive.
A senior energy consultant at leading energy brokers Apollo Energy said:
“While the focus is being placed on domestic energy costs, it is important to bear in mind that many UK businesses will be affected by this development, too.
“What is also important to remember is that the increase in the cost of energy bills is directly related to the amount of energy you – or your business – consumes; so it’s very likely that businesses will see much greater rises than £15 per year.
“It is no secret that businesses of all sizes are struggling to cover costs and stay afloat in times of economic hardship, which is why it is crucial for them to secure the very best commercial gas and electricity contracts now – ahead of the expected price hikes.”
Photo by Edinburgh Greens