Energy prices ‘hitting business’
A consumer energy watchdog will lobby government today, warning that increasing energy prices pose a serious threat to UK businesses.
Energywatch, the gas and electricity consumer group, addresses the issue at the Labour party conference this morning, and will lobby government to exert its influence to help lower prices.
Business leaders and consumer watchdogs are increasingly concerned over the effects that the current hike in energy prices will have on British business.
“Every business – from the smallest corner shop to the largest factory – is suffering,” Energywatch chief executive Allan Asher said.
Energywatch says that gas bills in the glass manufacturing industry have leaped by 55 per cent in the last year, meaning that in the UK businesses are paying over 20 per cent more than their European counterparts.
Manufacturers of construction products are now paying more than 40 per cent higher energy bills than their European rivals.
Former UK monopoly British Gas announced that at the start of September it would increase its gas and electricity bills by 14 per cent.
Energy costs have been driven upwards this year on a series of spikes in global oil prices, as well as the fact that last year Britain became a net importer of gas for the first time, with North Sea gas stocks seriously reduced.
While the UK market is highly competitive, European gas exporters operate on a virtual monopoly basis and pass on high prices to UK buyers.
Mr Asher said: “Something is seriously wrong when British businesses and taxpayers are having to pay so much more for their energy while the big offshore producers are awash with revenue.”
Other groups are equally concerned by the developments, with an energy industry delegation planning to visit Brussels next month to lobby European Parliament MEPs over the current crisis in the UK market.
The Energy Intensive Users’ Group, which represents businesses such as the steel industry, fears that with a harsh winter forecast, and energy prices topping a record £1 a therm, “hundreds of thousands” of workers could be facing job losses.
