Energywatch warns energy prices will hit business
Link: Energywatch warns energy prices will hit business
Utility consumer group Energywatch has warned that soaring energy prices are placing UK businesses of all sizes at risk. The group voiced its concerns at a meeting at the Labour party conference in Brighton.
Energywatch and business leaders called for the government to act to help lower
prices.
At the same meeting, the CBI said that firms could be forced to lay off staff and close down, this winter, if fears of a power shortage were realised.
Sir Digby Jones, head of the CBI said “inadequate” UK planning meant that the UK only had enough gas in reserve to supply companies for 11 days, compared to 55 in other European countries. The problem is not expected to affect domestic consumers.
Energy minister, Malcolm Wickes, said he would look into what could be done to increase power supplies.
In an interview with the BBC, David Workman, director general of glass manufacturers’ organisation British Glass said: “If you compare prices in the first quarter of 2003 to the forecasts for the first quarter of 2006, prices are expected to increase by 166%”.
He warned that companies might be forced to burn oil for power if supplies remained low, increasing costs further, and running the risk of further costs if they broke their emissions limits.
Under the European Union’s Emissions Trading Scheme (EU ETS), companies are given carbon dioxide emission limits, but they can also trade in the emerging European carbon market.
Allan Asher, chief executive of Energywatch said: “Every business - from the smallest corner shop to the largest factory - is suffering”.
