SME energy bills predicted to remain above pre-crisis levels

Small and medium-sized enterprise (SME) energy bills are expected to remain 70% above pre-crisis rates.

04 Sep 2024

Small and medium-sized enterprise (SME) energy bills are expected to remain 70% above pre-crisis rates.

Data published by management consultancy Cornwall Insight showed that small businesses are paying over £5,000 more a year in energy bills than prior to the energy crisis.

The data suggested that bills are set to rise between the April 2025 and March 2026 contract period.

It also predicted that annual electricity bills will increase to an average of £13,264 by April 2025 – 70% more than in 2020/21.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: 'While prices may have settled from their peak crisis levels, they are far from being sustainable for the numerous smaller businesses already struggling in this economic climate.

'For all the criticism of the household energy price cap, it does provide a level of protection that businesses simply do not have. Given the impact of the cost-of-living crisis on consumer spending and high street trade, the government will need to seriously consider how to support businesses with their high energy costs if they want to prevent further closures.'

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