UK manufacturers prepare for EMR charges to hit bills



As EMR charges are added to bills this month, UK food and drink manufacturers are concerned about rising energy prices. Many feel government has not done enough to explain the impact of energy policies on their bills. Most think government should give large manufacturers tax breaks to help counter the cost of energy market reform.

That’s according to a survey carried out for Npower.

The firm commissioned a poll of 100 decision makers at food and drink manufacturers. It found that three quarters were concerned about rising energy prices. Some 65% of respondents feel that the Government is not providing enough financial compensation to help businesses fund UK energy policy. Around 38% of businesses polled claimed they have had too little warning or explanation of the impending new charges on their bills.

EMR charges (for the CFDs and the capacity mechanism) will start to appear on bills this month. The impact for most businesses will initially be negligible but will rise over time. By 2020, they could make up 10% of the electricity bill.

Npower said energy management must be a priority for firms. It added that suppliers should be engaging more with big business to “help them mitigate the risk of rising prices, maintain their competitiveness, and even turn energy into a commercial opportunity where possible,” according to Wayne Mitchell, director of markets & innovations for Npower business solutions.

“The reality is that energy bills will start to increase from April, yet we continue to underestimate the impact on large businesses. Cut backs and carbon leakage are a concern for UK plc; not only do we risk losing productive, viable businesses but the overall objective of reducing carbon emissions could be lost as well.”

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