FSB concerned about the effects of proposed energy price hikes on SMEs

The Federation of Small Business is concerned that the new energy hikes proposed by the Government, whixh they are calling ‘climate change policies’ are going to end up hurting small businesses. The FSB is concerned that climate change policies will not protect SMEs from high energy costs.

As part of last week’s Department for Energy and Climate Change report it was released that energy prices are set to increase rapidly. The report took a closer look at what the energy and climate change policies would do and that when the global gas price increases most businesses and homes are going to be affected.

The report also showed that business bills that belong to medium sized energy consumers already have bills that are 21% higher than they would be because of Government policies. As if this is not bad enough, by the year 2020 they expect to be 22% higher.

Medium energy consumers are those that consume between 3,000 and 28,000 of MWh of gas and on average between 2,000 and 20,000 MWh of electricity. Larger energy users will have even worse bills as their energy costs will be about 14% higher initially but are set to rise by 36% by the year 2020.

National policy chairman of the FSB Mike Cherry stated that the report paints a grim picture for plenty of small businesses in the UK because the cost of energy is already causing many small firms to struggle. He added in that most are not going to be able to deal with another 22% increase in pricing.

Cherry added that the Government policies are not being designed with any thought to small firms and that by not protecting small firms they are ruining the very foundation that they are depending on for growth.