UK government to penalise businesses with energy cost rise

Chris Huhne, the energy secretary, has today confirmed that UK businesses will bear the brunt of ongoing policies to cut emissions in the UK. It is forecast that business energy bills will rise by up to 26% over the next decade while at the same time consumers will see a rise of about 1% in their own energy bills. While there is no doubt that the UK needs to revamp and update the energy system there is great concern that a massive increase in the base cost of energy will force UK businesses to eventually pass these increases to consumers.

Many were concerned that the previous government appeared intent on cutting emissions and passing on the cost to businesses and consumers. However, it seems as though the coalition government is adamant that businesses will take the brunt of the additional investment and the cost of cutting energy emissions from the UK. However, many believe that the impact of the credit crunch and worldwide recession will ultimately be felt for the next decade as well as recent budget cuts announced by the UK government.

If this is the case then a 23% hike in energy costs in the business environment will certainly not help!