Responding to the Energy Secretary’s speech on reform to the UK’s energy system, Ben Martin, Policy Manager at the BCC, said:
“Today’s announcements on reform must mark the start, rather than the end, of Government action on energy security and costs. Setting out measures to break the link between gas and electricity prices can help reduce the impact of volatility in the global energy market. Even before the Iran war, 52% of firms were facing cost pressures due to their utility bills. But while wholesale prices represent a key part of energy costs, there are other major components in energy bills, including network charges and levies such as the Renewables Obligation. The Government should create parity between the levies on business and domestic bills and fund at least part of the cost of the Renewables Obligation for firms. It has also rightly recognised the importance of reducing delays for upgrades to the grid. This is critical as many businesses continue to face connection delays, impacting growth. But to drive progress towards electrification, it must be cheaper for businesses to switch to low carbon power. Building the UK’s energy resilience also means managing the long-term energy transition of the North Sea better. This includes making use of domestic production for as long as the UK remains reliant on fossil fuel imports, while we continue to progress towards renewable energy.”
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