Scottish businesses have voiced concerns over sharp energy price rises after the end of a new Government scheme.
UK Energy Secretary Jacob Rees-Mogg announced plans yesterday to slash the cost of wholesale gas and electricity for business customers for six months from October.
The cap will mean the “supported wholesale price” will be £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas – around half the projected price on the open market and equivalent to the scheme in place for households.
Scottish Chambers of Commerce chief executive Liz Cameron raised concerns that energy prices could spike after March and put companies at risk, as well as calling for clarity on who will be able to access support after the deadline.
One Scots café owner has revealed his business is barely breaking even after receiving a staggering summer energy bill for more than £8600.
John Mackenzie says the costs are a “major blow” for his café The Boxcar Coffee and Yard in Aberdeen. The 43-year-old claims the bill covering the same timeframe cost him less than £1000 last year.
John, who also works as a consultant offshore, owns four businesses which he believes will help keep the company afloat, but fears for smaller businesses without the same security.
John shared a photo of his SSE bill on Facebook, writing: “We installed LED lights, installed a smaller, newer coffee machine, we replaced old fridges and freezers with new energy efficient ones and there is not much else we can change to reduce our power consumption.”
Speaking yesterday, John said: “I’m in a fortunate position where it’s not my sole business or form of income. There’s no profit now, we really have to watch staff hours. That’s where the strain is, it ripples through the company.
“There will be little reinvestment because all the money is going on bills and salaries. We’re basically working for absolutely nothing …We’re just paying power bills.”
Hairdressers are also being forced to cut their opening hours ahead of what stylists fear will be a “tough winter” due to the cost of living crisis.
Local businesses have told us a combination of rising energy bills, clients looking to save money, and price increases on many products they use will create a difficult situation.
Natalie Hendren owns the award-winning Aleighya’s Hair & Beauty Salon in Rutherglen but says she will move to a four-day week to combat the crisis.
She said: “It’s already having an effect and I’m dreading the next bills coming in as the energy costs will have gone up again. The first thing we’ve had to do is inflate prices … everything we use has gone up in price – it’s unavoidable.
"It wouldn’t be viable for us if we didn’t do that, sadly. We’ve also had to introduce deposits as well to make sure people have their appointments and come in, as we can’t afford people not showing up now.
“The problem as a salon is that there is very little room for us to save money. We’re a business that will be high on electricity as we need to use it for things like hairdryers obviously, and we need good lighting throughout the day.
“We also need to keep the place warm, especially for older customers that come in.”
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