The Impact of Government Policy on Energy Prices

With some big changes incoming, we’re taking a closer look at how developments in government, new leadership, policies and legislation can have a direct impact on energy prices and thus your business’ energy bills.

The Factors That Affect Your Business Energy Prices

Firstly, let’s consider the key factors that affect your business energy prices and what you pay per month or per year.

1. The global energy market – Fluctuations in the global market can lead to significant shifts in energy costs for businesses, impacting their operating expenses and bottom line.
2. Rising international prices for fossil fuels, especially gas, driving up energy bills
3. Network charges impacting energy bills
4. Energy supplier operating costs and margins influencing prices
5. Energy and climate change policies aimed at:

• Delivering low-carbon, secure, and affordable energy supplies
• Helping households and businesses save energy
• Supporting low-income and vulnerable consumers

Policies Introduced By The Government

1. Renewable Energy Project Approval: The government recently greenlit a massive offshore wind farm project, aiming to reduce carbon emissions by 40% over the next decade. This project is expected to power millions of homes with clean energy and significantly boost the renewable energy sector.

2. Tax Reforms on Energy Companies: A new policy has been implemented to increase taxes on fossil fuel companies while offering tax incentives for renewable energy investments. This move is designed to encourage a shift towards greener energy solutions and discourage reliance on non-renewable energy sources.

3. Environmental Regulations: Stricter environmental regulations have been introduced, limiting emissions from industrial plants. These regulations are set to improve air quality and reduce health risks associated with pollution, showcasing the government’s commitment to environmental protection and public health.

How These Policies Influence Business Energy Tariffs

These government policies have a direct impact on energy prices for businesses. With the introduction of renewable energy projects, there is a growing demand for clean energy sources, resulting in increased tariffs to cover the costs of implementing these projects.

Similarly, the tax reforms on energy companies can lead to higher costs being passed onto businesses in order to maintain profit margins. This also applies to environmental regulations which may require businesses to invest in cleaner technologies and processes.

Moreover, changes in government leadership and shifts in political ideologies can also affect energy prices. Different administrations may prioritise different aspects of the energy sector, resulting in policy changes that again, can impact business energy tariffs

What You Can Do To Manage Your Gas & Electricity Costs

While little can be done to change the external influences on your gas and electricity bills, there are things you can do to manage your business energy costs:

Changing Business Energy Suppliers

One of the first things you can do is shop around for the best deal.  Conduct a thorough comparison of business energy suppliers to find the best tariff for your specific needs. Look beyond just the price and consider factors such as customer service, stability, and renewable energy options offered by each supplier.

Stability would be key, especially in times of economic or political uncertainty. A well-established energy provider may be a more reliable provider when times are uncertain.

Additional Cost-Saving Strategies

As well as switching business energy suppliers and shopping for the best deal, there are many other cost-saving strategies a business can undertake. from making energy efficiency upgrades to business premises to simply conducting an energy audit, these measures and steps can make a big difference to your business energy bills. Helping to cut your costs and to future-proof your business for the future of clean energy.

• Conduct an energy audit of your business
• Energy-efficiency upgrades
• Investment into renewable energy
• Use a smart meter for businesses to track your energy consumption in real-time

If you would like more information about renewable energy such as 100% UK wind power or would be interested in receiving a free quote form D-ENERGi for your business energy, do not hesitate to get in touch.