Businesses in the UK are struggling to keep their lights on because of the current electricity prices. The United Kingdom has some of the highest electricity prices in Europe. These high electricity prices are putting a strain on businesses, with many struggling to keep their lights on.
Many business utility services are helping businesses to come up with electricity plans that may help them. In this blog post, we’ll take a look at how businesses are surviving with the current electricity prices in the UK.
Survival of Business in the Current Price Hike
Businesses in the UK have been struggling to keep their lights on due to the high cost of electricity. The average business in the UK spends £2,500 on electricity per year, which is 10% of their total operating costs. This is twice as much as businesses in Germany and three times as much as businesses in France.
To make matters worse, businesses in the UK are also facing higher energy taxes than their counterparts in other European countries.
What is CCL?
The Climate Change Levy (CCL) is a tax on businesses that was introduced in 2001. The main purpose of the tax is to encourage businesses to reduce their emissions of greenhouse gases.
The CCL currently adds £5 for every MWh of electricity consumed by businesses, which is equivalent to an additional 20% on business electricity bills.
In addition to the CCL, businesses in the UK also have to pay the Carbon Price Floor (CPF). The CPF is a tax on carbon dioxide emissions that was introduced. The CCL has been successful in reducing emissions of greenhouse gases.
Between 2001 and 2015, emissions from businesses covered by the CCL fell by 21%. However, the tax has also increased the cost of electricity for businesses. This has made it difficult for some businesses to stay profitable. Therefore, business utility services like U4B may help them!
In addition to these high costs, businesses in the UK are also facing uncertainty due to Brexit. The British government has not yet agreed on a deal with the European Union regarding the future relationship between the two trading blocs.
This uncertainty has caused businesses to invest less, which has led to a slowdown in economic growth.
Despite all of these challenges, businesses in the UK are finding ways to survive with the current electricity prices. Many businesses have renegotiated their contracts with suppliers in order to get better deals.
Others have invested in energy-efficient technologies such as LED lighting and solar panels. And some businesses have even decided to relocate to countries with lower electricity prices, such as France and Germany.
Why Are Energy Prices Rising?
Energy prices in the UK have been rising for several years. The main reason for this is the increasing cost of natural gas. Natural gas is the biggest source of electricity generation in the UK. In 2015, it accounted for 40% of all electricity generated.
The price of natural gas has been rising because of increases in the price of crude oil. Crude oil is a major input in the production of natural gas.
Another reason for the rising cost of electricity is the increasing cost of environmental regulations. The UK government has introduced a number of environmental regulations in recent years, including the Climate Change Levy (CCL).
Steps Taken By the Government For Energy Prices
In recent years, the UK government has taken a number of steps to try to address the issue of rising energy prices. One of the most notable initiatives has been the installation of smart meters in homes and businesses across the country.
Smart meters provide real-time information on energy usage, which can help to encourage people to use less power during peak times. The government has also introduced a number of schemes to help people insulate their homes and make them more energy-efficient.
These measures have helped to reduce the amount of energy that households need to use, and as a result, have helped to lower energy bills. Moreover, business utility services have offered businesses to switch suppliers to get better rates and deals.
In addition, the government has invested heavily in renewable energy sources such as wind and solar power. This has helped to increase the supply of renewable energy and make it cheaper for consumers.
As a result, the UK government is taking a number of steps to try to keep energy prices down for households and businesses.
Conclusion
High electricity prices are putting a strain on businesses in the UK, but many are finding ways to survive. Renegotiating contracts, investing in energy-efficiency technologies, and relocating to cheaper countries are all possible solutions for businesses that are struggling to keep their lights on.
Despite all of the challenges that businesses are facing, there is still hope for those who are willing to adapt and change with the times. The rates of business energy UK are rising and you need assistance from a reputable company like Utility4Business to help you get through the process – without going bankrupt.
