Business consumers battling spiralling energy costs could be among the big winners following the Government’s landmark reset deal with the EU.
British firms have broadly welcomed talks to secure closer alignment on energy, with the CBI amongst those hailing the potential of Sir Keir Starmer’s new pact.
Following Brexit, the UK is no longer part of the EU’s shared electricity market which allowed member states to trade electricity without restrictions.
But this week’s reset opened the door to additional post-Brexit costs to energy companies being scrapped altogether — with as much as £370m saved annually.
“At a time when business owners are increasingly conscious of the rising cost of energy this feels like a rare piece of positive news,” said Callum Thompson, CEO of Business Energy Claims (BEC).
“It really is a case of every little helps. I don’t think we’ll be talking about huge savings here but if there is less cost pressure on energy companies then I’d like to think those savings will be passed on to business consumers.
“What this does do is place fresh focus on the wider energy market at a time when we’re calling for greater industry regulation and better support for businesses.
“The fact that the UK’s under-pressure business owners are hoping Labour’s EU reset can indirectly cut energy costs says it all. Right now firms will take any good news they can get!
“In the meantime we remain fully committed to helping those same businesses better navigate their energy bills and understand whether they’ve been mis-sold a contract.
“The EU reset is encouraging but let’s be honest — any final deal looks a long way off.
“BEC can make a difference now and that’s exactly what we’re doing.”
European Union shared electricity market
The EU is still the UK’s primary trading partner when it comes to electricity but leaving the shared market was a hammer blow to energy companies — with extra costs passed on to customers.
The much-touted reset, brokered by Labour last weekend, included a commitment to talks on re-entering the EU’s shared electricity market.
And Adam Berman, of Energy UK, which represents UK energy firms, described the move as ‘really positive’.
“Anything we can do to lower bills, whether it’s £5 or £10 a year, is frankly worth it,” he said.
Callum is cautious in his optimism but added: “At BEC we actively encourage any move that drives down the cost of energy for business consumers.
“Of course we’ll be keeping a close eye on talks between the UK and the EU and keeping our fingers crossed for a positive outcome.
“But it’s important that we focus on the here and now and continue to do everything we can to expose the practice of mis-selling.”