Wind turbines may become more prevalent.
Ofgem’s announcement that the UK could face gas and electricity shortages in the not too distant future has caused a ripple of concern for business energy and household consumers alike.
In a report released today, OfGem confirmed that there was “reasonable doubt” that the UK’s energy market in its current structure would succeed in maintaining sustainable supplies in years to come.
In addition, energy bills are set to rise by up to 25%, which could be potentially crippling for a small business, and while the Clean Energy Cashback scheme announced on Monday has promised to reward household and business energy customers that invest in renewable energy solutions such as solar panels with money back for the energy they generate, there is concern that this doesn’t go far enough to attract real investment from businesses.
I came across an interesting article on GreenWise that pointed out businesses were unlikely to be attracted by the returns on investment, which were likely to be five to eight per cent. It’s important to note that businesses would also have to pay tax on anything earned through the scheme.
Speaking to the BBC, Energy Secretary Ed Milliband tried to play down fears of an energy shortage. “The government is confident that Britain will meet its security of supply needs in the years ahead,” he said.
But OfGem remained adamant that the energy industry needed a serious overhaul, the most radical suggestion being a move away from the privatised, competitive energy market brought in during the Thatcher era.
I think one thing is very clear from this report, and that is that the energy industry faces unprecedented changes over the next decade. That means there’s never been a better time to review your business electricity and business gas suppliers, and ensure you’re getting the best deal.
To read the full GreenWise report into the Clean Energy Cashback scheme, click here:
And for the BBC’s report and analysis, click this link:
http://news.bbc.co.uk/1/hi/business/8494899.stm
Image credit: CCA from Flickr by Martin Pettit www.flickr.com/photos/mdpettitt/2981491177/
Tags: Business Electricity, Business Energy, Business Gas, Energy shortage, Green energy
