Ofgem, the UK energy regulator, recently increased the domestic energy price cap to help suppliers recover money lost over the last 12 months. The price cap exists to control the cost of gas and electricity in the UK and limits the unit rate and standing charge that suppliers can bill for their default tariffs and it gets reviewed twice a year.
However vulnerable small businesses are left behind and exposed to price increases that we are now witnessing within the market. Small businesses like restaurants, cafes, local retailers, and services in our communities, need more support and backing from the government as they bounce back from COVID 19 lockdowns and restrictions limiting their profit.
Moreover, heading into the busy festive period, the rising cost of energy presents a huge problem for businesses at a crucial time, with margins set to be squeezed and a huge amount of strain put on company cash flow in every sector. Until 2014, the ‘big six’ energy companies controlled 90% of the market, until Ofgem, allowed smaller suppliers to compete and potentially drive prices lower for consumers. The energy price cap has already been raised to a record level this winter. Those on standard tariffs and who use the typical amount of energy per household will see an increase of £139 to a whopping £1,277 a year.
Not only this but those on prepayment meters will be hit with a £153 increase
Your local pub, newsagent, takeaway, hairdresser, butcher, restaurant, etc all desperately need your help. Small businesses are being pushed into bankruptcy by runaway energy prices, which have increased by as much as 300%.
We are not talking about big companies like Tesco or Amazon, we are talking about small, local businesses. These increased energy prices are pushing many local businesses to the wall.
Join the Digital Energy Revolution in making a positive change by signing our petition to extend the price cap to small businesses.
