Page 4 - EurOil Week 04 2022

EurOil COMMENTARY EurOil

UK businesses urge action

on high energy bills

Businesses across Europe are facing similar difficulties

UK THE UK’s top five business groups have urged “It will hurt low-income households most
the government to take quick and decisive action acutely, but these cost increases will have
WHAT: to curb rising energy prices, warning that a fail- knock-on impacts throughout the economy,”
UK businesses have ure to act will result in lower investment, a rise in the business executives said. “We therefore urge
urged government action poverty and potential spiralling inflation. the government to take action to mitigate rising
on high energy bills. The heads of the CBI, the British Chambers domestic bills and support the most vulnerable.”
of Commerce, the Institute of Directors, Make Businesses too have been hit hard by the steep
WHY: UK and the Federation of Small Businesses increase in bills. Further hikes will come after
The government is yet to addressed a joint letter to UK Chancellor Rishi fixed tariff contracts have expired.
take any major steps to Sunak, saying that “rocketing” energy bills for “The scale of the crisis has left companies
address the situation. households and businesses would undermine with little protection while they face dealing
the post-lockdown economic recovery. with soaring wage, shipping and tax costs,” the
WHAT NEXT: “As a collection of business groups, we are groups said. “Small and medium-sized busi-
Failure to act will writing to ask you to act urgently and decisively nesses ([SMEs] are most at risk. Many compa-
undermine support for to support consumers with spiralling bills and nies will be left with little other choice than to
a government already help business manage inflated costs over the pass costs on to their customers, adding further
engulfed in a scandal medium term,” they said. inflationary pressure.”
over the breach of They estimated that an increase in household Businesses and households are facing sim-
COVID-19 restrictions. bills to GBP2,000 ($2,700) would add 1-2 per- ilar difficulties across Europe, where a sharp
centage points to the UK inflation rate, which rebound in energy demand over the past year
is already at a three-decade high of 5.4%, and coupled with underinvestment in global gas
would plunge 2mn people into fuel poverty, supply has led to crippingly high prices. The
which is when a household cannot afford ade- UK is one of the countries worst hit by the crisis,
quate energy services on their present income. owing to its heavy dependence on natural gas for

P4 www. NEWSBASE .com Week 04 27•January•2022