Recently the UK has been experiencing unprecedented increases to energy prices. On top of this there are other rising costs, a shortage in the labour market, and adverse exchange rate movements which are impacting on costs and increasing inflation.
Many businesses will find it difficult to absorb the increasing costs and ultimately they will have to be passed onto customers.
The increase to energy costs will effect most business but will be especially detrimental to those companies who are dependent on energy to fuel key processes, such as those in manufacturing.
With the price increases effecting the wider market there are unlikely to be any cheaper alternative suppliers.
Some business will have the advantage of being on a fixed contract. It will be important to consider future costs and prepare for the future increase.
A review of their energy consumption may assist a business in reducing cots .The Company can then look to see if there are any steps they can take to reduce consumption with new technology or a change to working practices.
There can be tax reliefs for those looking at greener technologies, such as reduced VAT rates and enhanced capital allowances.
Grants and schemes could also be available to encourage energy efficiency.
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The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.