On Sunday 14th August, Liam Conway, Head of Sales at Control Energy Costs, was interviewed by Times Radio’s Alexis Conran, about the energy challenges facing businesses, where there is no price cap on energy bills.
The interview starts one hour and ten minutes into the programme.
Liam said that the fundamental issue is that a number of energy suppliers do not want to take on new business or renew existing contracts. Given that bills have risen between four and 12-fold, the credit implications of higher value energy contracts are adding even further complexity.
Given that 70% of businesses renew their energy contract in October, this is a significant concern for many.
Liam went on to say that businesses who are not able to renew with their current supplier have two options. The first is to go onto out of contract rates, where rates will be punitive, and the other is to consider a flexible purchasing framework, instead of their previous fixed price contract.
The impact of such high increases in energy bills, combined with inflation, is going to put many businesses under immense pressure. Liam mentioned that there is a government scheme to support the most energy-intensive businesses, but that only covers around 300 of the largest manufacturing businesses and suggested that the Government needs to extend this support and intervene in some way in the short term.
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