While supplierswitch.com welcomes the Government’s attempts to address the issue of spiralling energy costs, it would urge the cross-party group to extend their gaze towards how these problems are impacting upon businesses. supplierswitch has recently conducted research into annual energy costs, which produced concerning results for Britain’s small and medium-sized business (SMBs) in particular. Those companies set to renew their annual contracts in October 2008 that have been on a fixed price deal (typically an annual contract) will be looking at increases of 83% in their electricity bills and a massive 137% for gas.*
According to Equifax the number of business failures this year has already risen by 9% year-on-year. In the face of these increases, those companies that have not budgeted for such large increases in their bills will be facing a significant threat to their ongoing business prosperity. supplierswitch.com forecasts that price rises of between 80 and 140% will be a major contributor to an increased number of business failures throughout the remainder of 2008 and 2009 unless appropriate steps are taken to manage energy price rises.
- Jon Davies, Managing Director, supplierswitch.com
*calculations are based on current wholesale prices and those in May 2007.
