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Posted by Mark Tanner on 23/08/2022

No energy price cap for business

Much has been said about the cost-of-living crisis, TV, radio and newspaper reports on the impending crisis for householders. The causes by now are well known and unlikely to change in the near future. And there is not much individual householders can do about it. Switching suppliers is now an irrelevance as supplier are all in the same position. OFGEM, the energy regulator’s price cap is in disarray and most commentators agree it needs updating in both method and practice.

For businesses there is no energy price cap. And this is what business owners are worrying about. Aspect is no different. We use a lot of electricity running our embroidery machines and a lot of gas running the screen print dryers.

Industries which are heavy users of energy – and there are more than you’d expect – are facing massive price hikes which will inevitably feed in to retail prices. Most people won’t be aware of the quantities of gas and electricity industry consumes but can more easily see what retailers such as the supermarkets use to power their refrigeration units. Vehicle fuel too has come down slightly from an all-time high and is likely to rise further. That too will feed through to prices consumers pay for goods and services.

So, one can extrapolate that more than usual businesses will fail between now and next spring. This will put people on the dole and further impact on their ability to maintain their homes. And with interest rates increasing homelessness is sure to increase too. We are in for a very rough ride and I fear the effects of energy inflation will last for years to come.

Aspect appreciates it's customers loyalty and will keep any increases to a minimum.