Plans to curb funding for GB Energy could hit cash-strapped businesses already struggling to contend with predicted gas and electricity prices rises.
It has been suggested that June’s spending review may include a cut to planned funding for the state owned company set up by Labour to drive renewable energy — and ultimately slash energy bills.
And that could mean less support for firms seeking low interest loans via local authorities to fund solar energy, shared-ownership wind farms and more.
The closure of the Energy Bill Relief Scheme and its short-lived successor — the Energy Bills Discount Scheme — have hardly helped businesses seeking to contend with gas and electricity price rises.
And limiting an alternative funding pipeline in the shape of proposed GB Energy support would represent a hammer blow to ambitious businesses desperate to grow.
“Right now businesses need all the help they can get navigating a constantly changing energy market and — unlike the price cap within the domestic market — that support just isn’t there,” says Callum Thompson, CEO of Business Energy Claims.
“GB Energy was only given £100m to cover its first two years and if that pot is being reduced then I worry that businesses will again be the ones to miss out.
“The reintroduction of a state owned energy company was supposed to supercharge our country’s clean energy revolution. Businesses want to get on board with that but they need help.”
More than £8bn of taxpayer money was promised over the five-year parliament but a rumoured ‘zero-based review’ could see as much as £3.3bn shaved from the total amount.
Such a cut would seriously limit the potential for developing net zero schemes and inevitably dent confidence across the energy sector.
“The concept of GB Energy was warmly welcomed by businesses and it actually boosted confidence for a while,” added Callum.
“Cutting back on the company’s overall budget strikes me as a backward move and I can’t see it going down well with business leaders or the general public.”
BEC has positioned itself as a market leader in the energy space and prides itself on identifying the key issues affecting businesses grappling with rising costs and complicated contracts.
Callum continues to campaign for more support in the non-domestic energy sector and added: “While we specialise in reclaiming money owed as a result of mis-sold contracts, we recognise that budgets are being stretched in all kinds of directions and we’re here to help.”