Npower urges Government to help businesses cut energy use
The Government needs to offer more support for businesses looking to boost their energy efficiency and drive down bills, argued a senior member of a leading energy supplier.
Anthony Ainsworth, chief operating officer at Npower Business Solutions told City PM there needed to be “additional Government policy” to help businesses “proactively invest in measures to help protect them from energy risk and any future volatility. “
He said: “It is more important than ever that they also have the support to reduce consumption through greater energy efficiency. We are working with our customers to help them do this, but any further incentives from government would have a hugely positive impact, both in terms of reducing energy demand and lowering carbon emissions.”
The Government has pledged to double the funding for a nationwide drive to boost the energy efficiency of people’s homes.
At the fiscal event last November, Chancellor Jeremy Hunt has pledged to spend a further £6bn from 2025 to insulate homes and upgrade boilers, as it targets a massive 15 per cent cut in energy demand this decade.
This is on top of £6.6bn the Government has allocated to boosting energy efficiency across UK households since the start of this Parliament in 2019.
However, he has so far not unveiled any specific energy efficiency measures targeted at businesses.
Businesses exposed to rising energy bills
Hunt slashed support packages for businesses yesterday, announcing a £12.5bn cut in protection – replacing the £18bn Energy Bill Relief Scheme with the £5.5bn Energy Bill Discount Scheme from April.
The new 12-month package will offer a lower discount up until wholesale gas prices exceed a price threshold of £302 per megawatt hour (MWh) for electricity and £107 per MWh for gas.
It will only apply to 70 per cent of supplies used by businesses, and also includes a maximum discount for energy intensive industries such as manufacturing- set at £40 per MWh for gas and £89.10 per MWh for electricity.
Gareth Miller, chief executive at Cornwall Insight, also favoured further incentives for businesses to cut demand, particularly as this would also tie in with an increasing focus on going green.
This could include further investment commitments from the Government, which had to weigh up the capacity constraints of the UK business sector to invest significantly in the decarbonisation of business and industry while grappling record bills.
Commenting on the support package, he said: “It’s not about the will, it’s about the means. If the government is going to reduce direct support for business energy bills, then perhaps the policy focus should turn to how they can offset this by using tax and investment incentives, the design of energy markets, and greater financial reward for the demand side, allowing businesses to offset financial pressures, as well as maintain their pursuit of net zero.”