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Business energy prices unsettled by UK carbon policy.

Many might think that chasing the best business energy prices runs contrary to an environmental agenda.  However in an interesting development, 50 businesses recently co-signed an open letter to the Chancellor George Osborne, arguing, instead, the case for further reductions in carbon emissions. Going green, it seems, is actually rather good for business, and for business growth.  The Confederation of British Industry (CBI) estimates green business created a third of growth in the UK for the year 2011-2012.  However, uncertainty around carbon emission targets, they argue, could conversely see a £400 million drop in UK exports by 2014-2015. Nick Clegg recently joked that the only way you can only turn the blue of the Conservatives green, was by the judicious application of Liberal yellow.  However despite his unquestionably accurate grasp of primary school art and primary colours, fears remain that the Government’s energy agenda is sliding off track, thereby creating uncertainty in the business energy market, with a knock on effect on business nervy prices.  The letter, backed by organisations from big business, to the unions, to Friends of the Earth, argues instead for investment in low-carbon energy sources, such as nuclear and renewable energy.

Volatile business energy pricing

However, the Chancellor seems committed to gas supply, long term, a stand that is making him look increasingly isolated.  Combined with a lack of a defined carbon intensity target, this is creating uncertainty in the industry.  The government’s own climate change advisors are also quick to point out the wider political ramifications of failing to meet obligations set out in climate change legislation. This uncertainty can, in turn, create a trickle down effect, creating ever more volatility in the energy sector, in terms of pricing, leaving businesses exposed to the vagaries of the market.  And in this current choppy economic and ecological climate, what is needed more than anything is long-term confidence and assurance.  In such a fluid market, it is ever more fundamental to use a business energy broker to ensure that you have the best possible deal for your business, thereby ensuring you have done what you can to protect your company from the buffeting effects of rising business energy prices.

Published by Utility Helpline on (modified )