‘Genuinely terrified’ Britons react as the energy price crisis erupts, putting even more businesses on the verge of collapse.
The UK’s energy crisis and rising prices have left Britons “genuinely terrified,” with more businesses on the verge of bankruptcy as the situation threatens to spiral out of control.
Together Energy, a 170,000-customer energy supplier backed by local governments, is on the verge of going bankrupt as a last-minute funding search draws to a close.
Together Energy could become the 26th energy supplier to go out of business since August, as wholesale price spikes have left businesses unable to compete due to the industry price cap.
As calls for the price cap to be scrapped grow, Business Secretary Kwasi Kwarteng will meet with energy industry executives to discuss how the industry can be helped through emergency tax reliefs.
However, prices have soared as a result of a massive supply shortage caused by rising demand.
The energy price cap protects tens of millions of people until April, limiting the amount a household can be charged to £1,277 per year for the average household.
However, in less than three months, the price cap will be updated, and experts warn that it could rise by more than 50%, to as much as £1,995.
“I am genuinely terrified about rising energy bills,” Gillian Ferguson, owner of Twisted Empire Bakes in Scotland, warned.
“After my previous provider went bankrupt, we were transferred to Shell, who has just’suggested’ that we increase our monthly direct debit by £90 per month.
“I’m a wholesale baker who works from home and runs multiple ovens.”
“I’m not sure how much longer I’ll be able to stomach the price hikes.”
“With the increases in energy prices and also the increase in NI contributions in April, small businesses are going to be hit especially hard in more than one way,” said Kate Underwood, Managing Director and HR Director at Kate Underwood HR and Training in Southampton.
“Reviews will be needed to see where cost savings can be made, and the greatest cost, unfortunately, is people.”
“Equally, employees may have to re-evaluate their own income, and small businesses may see an increase in staff turnover, putting additional financial strain on businesses because the average cost to replace an employee for the first year is 50 percent of their salary.”
“Support is required.
“News from the Brinkwire.”