Ofgem Energy Price Cap Falls to £2,074

As predicted by many pundits, energy regulator Ofgem has announced its quarterly update to the energy price cap from 1st July to 30th September 2023.  Taking the energy cap down to £2,074 will provide many households with a slight decrease in their energy bills this summer. While this is a positive step in the right direction, some may feel it's not a substantial enough reduction following a winter that caused financial hardships for many.

Household energy bills have risen by 54% in the past year, but business owners are also affected. Business energy costs have also reached record highs in the UK over the past few months, putting significant strain on businesses of all sizes, and many are now facing the prospect of having to raise prices or cut costs to survive. Unfortunately, the new Energy Price Cap does not apply to UK businesses.

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Why did Business Energy Prices Increase?

The main reason for the rise in business energy prices is the global surge in gas prices. The price of gas has more than doubled in the past year. This has been driven by several factors, including the war in Ukraine, which has disrupted gas supplies from Russia.

What Has the UK Government Done?

Although the UK Government introduced the Energy Bill Relief Scheme and the proceeding Energy Bills Discount Scheme to address increasing business energy costs, many businesses are forced to raise their prices to cover operating costs. Subsequently, this puts a further squeeze on consumers, who already face rising costs for food, fuel, and other essentials.

It's become clear that the UK government needed to do more to help businesses with the cost of energy. This could include providing financial support or introducing measures to reduce energy demand. Otherwise, the energy crisis could lead to widespread job losses and business closures without action.

How You Can Reduce Business Energy Costs

There are many things that you can do to reduce business energy costs, including the following:

Switch to a more competitive energy supplier

With so many business energy suppliers in the UK, energy prices can vary significantly from one supplier to another. By taking the time to compare energy prices, you might find that you can save your business money by switching suppliers.

Invest in energy efficiency

There are many ways you could make your business more energy efficient. For example, you could include installing energy-efficient lighting, insulation or smart meters. You can read more about ways of reducing your energy bill in 'Our Top 10 Business Energy Saving Tips'.

Change working practices

You can also reduce your business energy costs by changing your working practices. Business energy-saving practices range from encouraging employees to work from home to simple but effective practices such as turning off lights and appliances when not in use.

By taking these steps, you can reduce your business energy costs and protect yourself from rising energy costs.

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