Energy Crisis Commission to Review Impact on SMEs

An ‘Energy Crisis Commission’, comprising leading experts and representatives from key organisations, has been established to assess the recent gas crisis's impact on households and businesses across the UK. The commission, which includes members from Energy UK, the Confederation of British Industry (CBI), Citizens Advice and National Energy Action, aims to equip the nation to handle similar crises better.

The New Commission

The Energy Crisis Commission, chaired by former MP David Law, will gather evidence on the 2021-2022 energy crisis, which saw a sharp increase in gas prices. Global supply chain disruptions and the sanctions imposed on Russia by the European Union following its invasion of Ukraine drove these price hikes. The resulting surge in energy costs posed formidable challenges to British businesses, which were already grappling with the fallout from the COVID-19 pandemic and the soaring cost of living.

Small businesses saw their energy bills skyrocket during this period, with these financial pressures having a ripple effect across multiple sectors. The commission’s investigation will focus on understanding these impacts in detail, aiming to offer recommendations to prevent future shocks.

David Law said: "The energy crisis has been hard on households and businesses alike. It’s important that we reflect on what has happened and the steps the country could take to mitigate the impacts of any future crises to ensure we are more resilient."

The commission's findings, expected to be published in autumn 2024, will include recommendations to bolster the UK’s energy resilience. Louise Hellem, CBI’s chief economist and critical commission member, said: “Energy price volatility over recent years has brought impossible choices for many families and significant cost pressures for businesses in multiple sectors, limiting their ability to invest.

“Assessing how policies can better protect households and businesses alike is important to bolster future energy resilience – an objective that business and government must work together to achieve. This should include prioritising catalytic green investment to build long-term energy security, improve home energy efficiency and accelerate the UK’s pathway to net zero.”

What to Expect from the Commission

For SMEs, the work of the Energy Crisis Commission will be particularly relevant as it seeks to address the vulnerabilities exposed by recent energy price spikes. Here’s what small businesses should anticipate:

• Recommendations for Resilience: The commission will likely propose measures that directly address businesses' energy security concerns. These could include policy suggestions to stabilise energy costs and incentives for adopting renewable energy technology.

• Support for Green Investment: The commission's focus on long-term energy security is likely to advocate for increased investment in green technologies. SMEs might see opportunities to access grants or subsidies to reduce reliance on fossil fuels.

• Guidance on Efficiency: Businesses may receive practical advice on improving energy efficiency. Enhanced efficiency can lead to significant cost savings and help SMEs become more sustainable.

• Empowerment for SMEs: The involvement of the CBI and other business organisations suggests that the commission will consider SMEs' unique challenges, which could lead to recommendations that ensure smaller businesses get the recognition they need.

As the commission gets to work, small businesses should stay informed about the emerging recommendations and prepare to adapt their energy strategies. The review’s findings could offer immediate relief and long-term solutions.

Switch to Save

While the long-term benefits of the Energy Crisis Commission's recommendations will take time, small businesses looking to reduce energy costs now should consider comparing and switching suppliers. Market competition can offer substantial savings, and by reviewing your options, you can ensure your business secures the most cost-effective deal.

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