Briefing paper helps firms navigate energy crisis

A briefing paper providing business leaders and local firms with advice on navigating through the energy crisis has been released by Greater Birmingham Chambers of Commerce.

The document explores the range of issues influencing the energy price rise and how the Government is intervening.

It outlines the impact of the energy crisis on the economy and business, through GBCC QBR 2021 Q4 data, as well as conversations and feedback from members.

It features case studies and anecdotal evidence.

From January 2021 to November 2021, gas prices have increased from 49p to 112.5p, subsequently increasing electricity prices from 53p to 112.5p.

This, coupled with 10-year high inflation (5.4 per cent), is negatively impacting businesses.

The UK has been particularly hard hit because around 40 per cent of its electricity is generated from natural gas - and 85 per cent of UK homes use gas heating.

As the UK imports around half of its natural gas, and has low domestic gas storage capacity, it has been particularly sensitive to global prices rises.

Over the next six months, 80 per cent of firms expect their energy prices to increase.

Energy was a key theme in the Chambers ' Sustainable Business Series campaign, which aimed to support businesses with reductions in their carbon emissions.

Generally, increased low-carbon practices on energy consumption will lead to cost reductions.

Will Hargreaves (pictured), environmental policy lead at Greater Birmingham Chambers of Commerce, said: “ “With energy prices not expected to drop until 2023, firms can expect more difficulty in managing the increased costs they are facing.

“The energy price increases are adding to the other inflationary pressures firms and facing post pandemic, such as rising labour and raw material costs.

“As a Chamber we have a range of support available for supporting the reduction of energy costs, which is detailed in the briefing paper, including content within our Sustainable Business Series on improving energy performance, through to energy assessments with our preferred partner, Inspired Energy. ”

Click here to view the briefing paper.