UK faces ‘cost of doing business’ crisis as energy bills rise fourfold.

The majority of UK companies are set to renegotiate electricity rates in October (as fixed price contracts expire).

A consultancy, Cornwall Insight, has said companies seeking new contract terms will be faced with price increases of more than four times 2020 prices.

Company lobby groups are calling on the government to intervene. The British Chambers of Commerce has proposed a five-point plan which includes calls for more power over business markets for the energy regulator, Ofgem, and tax incentives. The Federation of Small Businesses is calling for an energy price cap.

The government has, so far, only provided support to households. Around 1,800 companies in England and Wales registered for insolvency in July. This is up 27% when compared with the same month in 2019 (pre-COVID).

Adapted from an article in Financial Times