Page 4 - EurOil Week 04 2022
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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
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