It will come as no surprise to many in business that their business electricity and gas rates have grown considerably over the past few years. The majority of the blame for these increases has been laid at the door of the world energy market, political unrest and supply issues in certain areas of the world resulting in wholesale energy prices steadily increasing as a result.
It might surprise some to hear that unit prices are indeed dropping however the government have admitted that business energy bills in 2014 will on average be more costly overall than expected.
What Has Caused the Increase?
With unit prices, competitive pricing and discounts being available it might baffle some as to why businesses in 2014 have effectively been paying more out on their gas and electricity bills. In a statement from the Department of Energy and Climate Change recently as part of their Annual Energy Statement it was confirmed that the additional costs have been a result of energy and climate change policies put in place.
While the admission was estimated and no exact figure was given to accurately assess the rise due to these policies it was made clear that businesses have ultimately ended up paying more.
Rather than a shock announcement detailing the rise the DECC instead played down the amount that businesses are now spending. The government also went on to state that they intended to do more to help SMEs find the best deals for their business electricity and gas.
Action Businesses May Take Now
With the price of environmental policies and levies being unavoidable unless an enterprise meets the exemption criteria paying out isn’t optional. What businesses may do is take matters into their own hands in order to find competitive pricing for their business energy in order to maximise the savings wherever possible.
Business Save are ideally placed to help businesses do just this, using their expertise in the business energy market to find discounts and tariffs not routinely offered directly to customers while saving businesses time on arranging the cheaper contracts.
It is clear that businesses will continue to have to pay out for governmental decisions regarding energy usage, especially those with an intensive energy usage level and so being proactive and reducing costs before these green taxes are taken into account is the most efficient and certainly the most financial responsible choice.