UK Businesses May Face Big Increase in Energy Bills

It now seems that businesses in the UK may need to prepare themselves for increased energy bills. This news comes as the government plans to secure energy supplies and cut carbon emissions. Thus these businesses can expect to face a very steep increase in their energy bills.

This comprehensive plan by the government to cut greenhouse gases is also aimed at helping to end Britain’s dependence on risky oil and gas imports. Although some individual policies had previously been announced in the coalition policy agreement, the energy and climate secretary, Chris Huhne, said that the first annual energy statement provided more details on the matter. It also gave a timetable for each move from consultation to legislation.

The conservative liberal democrat coalition, alongside this energy statement, published what it said was the first yearly estimate of the impact of the policies on customer bills. The estimate went on to show that, compared to prices with no government action, combined annual gas and electric costs for households would rise only £13 by 2020. However, businesses were likely to see their bills increased by hundreds of pounds a year. This is because businesses would benefit less from energy efficiency measures available to households.

Another document that showed different policy options for meeting the pledges requirement to cut emissions of greenhouse gases by 80 percent by 2050 was also published. It showed six pathways with different mixes of renewable energy. Some of the different mixes included wind and solar power, carbon capture and storage, nuclear generation, and coal plants. One option even showed that the targets could be met even without any new nuclear power plants to replace the current reactors.