What the treasury-led energy review means for your business

On Monday, 17th October 2022, new Chancellor Jeremy Hunt reversed the energy price support package announced in the disastrous mini-budget.

But what does this mean for your business?

This article was written at the time of Liz Truss’s resignation from office. A new government, depending on the leader, may result in new plans and new reviews, ready for April 2023.

Keep an eye out for updates to this blog, if necessary, as and when a new prime minister is announced.

What it means for you and your business

Following the U-turn, the Chancellor said:

“The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned while ensuring enough support for those who need it.”

The Chancellor also said that any support for businesses will be targeted to those most affected and that the new approach will better incentivise energy efficiency. And that the post-April support will focus on the most vulnerable businesses.

But with energy prices rising and April still some way off, there’s a lot of uncertainty before that help comes.

The problems your business might face

Although the Government is proclaiming this new budget will benefit the most vulnerable, many business owners are sceptical.

So, what should you be worried about?

Initially, the government planned to provide support until 2024 under its Energy Price Guarantee, but this will now only last until April 2023. Having a two-year guarantee provided businesses with additional security. So, changing the energy price guarantee to a short-term date is likely to cause more uncertainty.

While the biggest concern for Amy Norman, a Senior Researcher at the Social Market Foundation (SMF) is the inevitable moral trades offs when it comes to who needs the most help:

“The principle of targeting support is hard to disagree with, but designing it has inherent moral and practical trade-offs. Who receives support and who doesn’t? Is our system set up to find them? And what is the cut-off point? Treasury officials need to ensure the new scheme avoids disastrous cliff-edges that create disincentives and see those in need miss out on support.”

Meanwhile, National Grid boss John Pettigrew has warned we might face blackouts between 4pm and 7pm in January and February if Europe cuts gas exports to Britain.

And for one final nail in the coffin, news outlets, including the BBC, report energy bills could rise above £4,300 in April due to the Energy Price Guarantee reversal.

What should your business do now to mitigate the inevitable?

With a lot of doom and gloom ahead, you need to put plans in place to reduce the impact of potential price rises and power cuts.

Inteb can help, and here’s how:

1.   Be more energy efficient

We’ve always championed this, and it seems the government is finally taking notice too. So, to be more energy efficient, you need to:

• Keep your energy data accurate and up to date
• Know where, how much and when energy is needed
• Involve your operations team to Identify quick ways to reduce energy consumption

2.   Get an energy audit

An energy audit will identify and quantify further measures to help you cut energy consumption and carbon emissions.

However, this needs to be done by a qualified energy professional.

For more information and to book your energy audit, visit our Audits and Pre-Acquisition Surveys page.

3.   Use more renewable energy

Low-carbon, renewable energy options include solar panels, PV (Photovoltaics), LED lighting, and heat pumps. Implementing them now will save you money long term and help you to green your energy supply.

For more information on Renewable energy options, visit our Renewables and Low-Carbon Energy page.

4.   Put a strategy in place

You’ll be better able to cope with inflation and power outages if you implement a solid energy strategy for the short, medium, and long term.

To create and optimise an energy plan to help your business and premises thrive to their full potential, visit our Net Zero Carbon Strategy page.

Ready to lock into a new energy contract?

Let’s get the conversation started – call us now on 0151 601 3476