Energy companies face a rebellion from businesses over meeting the cost of new low carbon energy networks unless they are “more open about costs and margins” business energy analysts Saturn Energy said today.
The warning came as research by Saturn Energy revealed that wholesale gas prices will soar by 15 per over the next two years.
It is calling for greater transparency from producers and suppliers and for them to be more open about costs and margins as UK businesses struggle to cope with rising energy costs.
The Saturn Energy figures show that wholesale prices could be 10 per cent higher by next winter and continue on the upward trend to be 15 per cent higher by winter 2012.
Those increases could well be passed onto businesses and consumers as energy companies justify higher prices with the need to invest in low carbon energy and infrastructure, according to Saturn Energy analyst John McShane.
But he said the rise would come at a time when businesses can least afford it and when energy costs are becoming the number one overhead for a lot of hard-pressed companies.
John McShane said: “It’s difficult to see how businesses and other consumers will be willing to foot the bill of building new low carbon energy networks, without being able to see where their money is going to.
“We all recognise that we have to pay for the energy we use, but we also want to be sure the price we are paying is a realistic one.
“With energy costs catching up or overtaking staff costs for many businesses it is time for greater transparency.”
Saturn is calling on the recently-announced Ofgem inquiry into recent price rises to “get to the root of these issues” and to press for the energy producers and suppliers to be “more open about costs and margins”.
Saturn has already warned of the pressure rising gas prices have on stretched businesses trying to control overheads - leading to customer price rises or “more drastic approaches” to cost reduction.
Stephen, Chippenham around 1 year, 5 months ago