Caithness Chamber of Commerce chief Trudy Morris warns government's energy support package is 'simply not enough'
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The UK government's energy support package for business is welcome but is "simply not enough," according to the Caithness Chamber of Commerce.
Its chief executive, Trudy Morris, stressed the help is only for six months and called for more detailed information on the scheme.
She said: "While it is welcome that the UK government has finally responded and stepped up to provide an initial support package for firms by capping wholesale energy prices for six months, it is simply not enough. We hope that the Chancellor’s fiscal statement on Friday will give more detail on support for businesses.
"A six-month cap is not enough for businesses to be sufficiently reassured that the problem won’t return when the cap is no longer in effect."
She added: "We also urge the UK government to engage with the business community before defining ‘vulnerable industries’ cited for support after the original six-month cap. Right now, many industries are vulnerable, and this is unlikely to change in such a short period of time.
"The Prime Minister has said she wants to deliver growth and get the economy going. To do this, we need businesses to survive."
Mike Duncan, development manager for the Federation of Small Businesses (FSB), said: "It’s hugely welcome to see some tangible support for Scotland’s small firms. We have all heard about local businesses being pushed to the brink by spiralling energy costs, and for many, this support cannot come too soon. And for our rural businesses, the promise of equivalent support for those using heating oil is also welcome.
"However, we remain concerned that there is no mention of a cap on rises to standing charges, and questions remain about what happens when the six months of support runs out. We can’t have businesses simply falling over a cliff in the spring if this relief is withdrawn."
He added: "The ball is now in the energy providers’ court. We expect them to pass on the benefit of this package in full and, as a matter of urgency, provide updated bills and quotes to each small business customer.
"At FSB, locally and nationally, we will be watching closely to ensure this support leads to a genuine, significant reduction in bills. We continue to work on behalf of our members to further reduce the financial burden they face during this difficult time."
NFU Scotland president Martin Kennedy said some businesses faced electricity bills set to increase by tens of thousands of pounds this autumn, threatening their livelihoods. He said once energy suppliers issue new contracts based on the cap, "we will be better placed to know the real benefits".
"Under the proposals, energy prices will still be going up, but the package announced will limit that increase for six months and provide a short-term degree of cost certainty and stability," he went on.
"Importantly, it will have significant benefits for those further up the food chain who process and package food. For the cap to be judged as effective, it must give all farming and food businesses confidence to go on, or food security will continue to be undermined and prices at the shop shelf will continue to climb."
Under the government scheme, the wholesale price of energy will be capped for businesses at a level which will see their bills reduced by around a half over the winter. The plan should result in prices being fixed for all non-domestic energy customers at £211 per MWh (megawatts per hour) for electricity and £75 per MWh for gas for six months.
It is estimated the scheme will cost between £25 billion and £40 billion with the money being borrowed by the government. The package is expected to be reviewed in January and comes after a £150 billion, two-year plan to help households with their soaring bills.
