Businesses Demand Urgent Clarity on Energy Market Reform
A growing number of UK business owners are calling for immediate clarity on the Energy Market Reform (EMR) after a recent survey revealed that 75% of companies are deeply concerned about its potential impact on their operations, according to the Energy Advice Line.
A poll conducted by energy provider Npower found that 97% of firms fear the reforms will drive up energy costs, while 86% worry it will reduce their competitive edge.
Julian Morgan, Managing Director of the Energy Advice Line—one of the UK’s leading independent energy price comparison and switching services—urged the Department for Energy and Climate Change (DECC) to provide more transparency on how the changes will affect individual businesses.
“Business energy users are facing uncertainty and confusion about the financial and operational implications of the EMR,” Morgan stated.
“The DECC must clearly communicate the benefits and long-term goals of these reforms. If businesses are left in the dark, the UK risks losing companies that may seek to relocate elsewhere to sidestep these changes.”
Alarmingly, the survey also found that 15% of businesses were entirely unaware of EMR and did not believe it would impact them—an indication, Morgan says, that more education and outreach are urgently needed.
“The DECC needs to go back to basics and provide clear, accessible information to businesses of all sizes. Companies need to understand what EMR is, why it’s being implemented, and how it will shape their future energy costs and operations.”
The DECC’s draft EMR legislation, released in July, outlines plans for renewable energy projects requiring up to £110 billion in investment by 2020. While the proposals set preliminary strike prices for renewables like wind and solar, support levels for nuclear power and carbon capture and storage (CCS) remain undisclosed.
With significant changes ahead, including potential price increases, businesses must take a proactive approach to managing energy costs.
“The only certainty in an unpredictable energy market is that companies need to take control of their energy consumption,” Morgan advised. “This means implementing an effective workplace energy policy, reducing waste, and frequently reviewing and switching suppliers to secure the best deals.”
The Energy Advice Line is a leading impartial energy comparison, switching, and advisory service for businesses and households. It actively campaigns for greater competition in the UK energy market to secure fairer prices for consumers.
For more information, visit www.energyadviceline.org.uk.