Energy bills have been a particularly hot topic in the UK over the past few years, as suppliers show no hesitation in passing their increased costs onto their customers. Both businesses and individuals are concerned about how they will be able to pay their bills and, where the latter is concerned, fears are particularly heightened following the rise of the energy price cap to £1,717 per year for a typical household as of the 1st of October.
However, these concerns are arguably even greater for businesses at this moment in time. The energy price cap does not apply to business energy tariffs, meaning that there is no limit when it comes to the amount that can be charged for business energy bills.
Business Energy Bills – What Is Changing?
With no agreed price cap, it can be difficult to predict what will happen to business energy bills this winter. Though the impact of rising energy prices may not be as obvious in October as it will be for domestic customers, it is widely accepted that businesses will see increased energy costs over the coming months.
Naturally, business energy usage will always rise over the winter as the temperatures decrease and the need for heating your premises and keeping staff and (if applicable) customers and clients comfortable increases. However, when the rates being charged for this energy increase at the same time, the impact on business energy bills is especially noticeable. If they are not already, we anticipate these overheads will be one of the most significant business costs heading into 2025.
What To Do If You Can’t Pay
As business energy bills rise, more and more companies are finding that they are struggling to pay. While this trend will provide some comfort to those concerned about their upcoming bills, it also highlights the need for prompt and decisive action. Fortunately, there are a number of proactive steps you can take if you are concerned about how your business will pay its energy bills this winter. These include:
- Monitoring your usage – By making an effort to keep a closer eye on how much energy your business is actually using, you might also be able to identify areas to make savings. For example, if lots of your usage is taking place when staff aren’t actually at work, you could save a substantial amount of money by turning computers and equipment off overnight where possible.
- Speaking to your supplier – Effective communication is key when your business is distressed. You should always be proactive and speak to your supplier if you cannot pay your business energy bills as this will increase the likelihood that you can come to some kind of agreement to make your payments more manageable.
- Review your tariff – If your business energy bills are rising, there’s certainly no harm in shopping around if you can as you may find that you can reduce your overheads by dealing with a different supplier entirely. However, do be mindful of the terms of your contract. You may be locked into a certain tariff or have a certain notice period and be limited when it comes to when you can switch.
Help For Struggling Businesses
If you have exhausted the above tips or are particularly concerned about your ability to pay your business energy bills, do not panic. There are a number of places you can turn to for advice and it is highly advisable to seek professional support if you are in debt with your energy supplier. By contacting a business rescue expert sooner rather than later, you can be certain that you have the widest understanding of your options for recovery moving forward.
At Ballard Business Recovery, our expert team has years of experience advising businesses in difficult situations. We can help you understand the different ways you can weather the storm of rising business energy bills and strengthen your financial position for the future. Get in touch today for an honest discussion with us.