I am the customer: Andrew Bainbridge

“Energy inflation poses a big threat to competitiveness”

Doubts over whether the lights will stay on combined with the belief that energy inflation is now a threat to future business make sorry reading. Rather than counting on gas and electricity to be both readily available and at reasonable cost to aid our recovery, it seems that uncertainties over our energy future may well be having a detrimental effect.
Much has been said about the dangers of carbon leakage and loss of jobs in energy intensive industries. That government has been moved to provide an element of relief, even in these austere times, confirms the danger of these jobs going elsewhere to no effect on global emissions.
A recent survey of businesses by the MEUC shows that over 90 per cent of respondents believe energy inflation poses a major threat to business competitiveness. So where does this leave the great majority of commercial and industrial businesses not covered by this highly selective scheme for the energy intensives? Nearly three-quarters say the extra cost, for example, from the introduction of the carbon floor price, will need either to be passed on in higher prices or absorbed internally.
The MEUC is very concerned about the new guaranteed strike prices on offer to encourage investment in low-carbon generation. Most range from £100- £150 per MWh as against the current wholesale market rate of £50-60. Customers will be paying the difference through higher prices, on top of the vagaries of the wholesale markets.

Andrew Bainbridge, chairman MEUC