SMEs risk costly business electricity bills, warns Ofgem

03/02/2010

Small and medium-sized enterprises (SMEs) face the risk of unaffordable business electricity bills unless action is taken to safeguard Britain's energy supply, industry regulator Ofgem has warned.

In a report released today (February 3rd), Ofgem said that there is a risk that energy bills could rise by up to 25 per cent over the next decade unless measures are taken to ensure Britain's energy supplies remain secure.

Ofgem said that the unprecedented combination of the global financial crisis, increasing gas import dependency and the closure of ageing power stations has combined to cast "reasonable doubt" over whether the UK's current energy arrangements will deliver secure and sustainable energy supplies.

However, it added that prompt action will reduce risk to energy supplies, help lower costs to consumers and make progress towards climate change targets.

Last month (January 11th), the National Grid raised concerns about the amount of gas the UK had in storage when it issued a gas balancing alert (GBA) following a sharp drop in Norwegian gas supplies .

This was the fourth GBA declared so far this year and only the fifth since the system was introduced four years ago.

Make It Cheaper is the UK's leading business price comparison and switching service. Find out how you could get impartial, comprehensive and free information about overheads such as business electricity.
Posted by Richard Smart