Some businesses will face energy bills five times higher than they’re currently paying from October, according to new analysis from Cornwall Insight.
Energy bills for businesses have surged over the last 15 months and particular through the first half of 2022 as wholesale prices have spiked due to concerns over Russian gas supply, tight electricity markets in Europe and a global disruption to Liquified Natural Gas (LNG).
As such, those whose two-year fixed price contracts are set to come to an end could face a fivefold increase, while those renewing an annual contract are likely to see their bills double.
“Business energy prices have climbed considerably in the past 15 months, and they stand on the verge of another significant steep uplift when new contracts come in to place for the period from 1 October 2022,” said Robert Buckley, head of relationship development at Cornwall Insight.
“Logic dictates that there can only be so long that so many businesses can pay so much more for their energy without knock-on consequences for themselves, their suppliers, and the wider economy, and if we at Cornwall Insight are correct there will be no return to 2020-21 wholesale prices before 2030. Despite this, in contrast to households, there has been strikingly little said about the affordability of business energy bills.”
Read more: Current+