Nearly half of small and medium-sized enterprises (SMEs) will find it difficult to pay their energy bills once the UK Government’s Energy Bill Relief Scheme ends on March 31 next year.
A further 4% will not be able to pay their energy bills at all, while 37% have predicted they will find it difficult to pay even if they are given more government support.
The survey findings from the British Chambers of Commerce (BCC) paint a bleak picture for SMEs this winter.
BCC director-general Shevaun Haviland warned firms will “struggle to see beyond” the end of the scheme and said it should continue beyond March 31 for those that need it.
More than four in 10 (41%) SMEs disagreed that tariffs available the last time they renewed their contract were affordable.
A further 29% said a range of tariff options was not available, while almost one-quarter (24%) did not feel it was easy to change providers.
A quarter of the SMEs surveyed had renewed their electricity tariff since April 2022, while 22% had renewed their gas.
‘Number one business concern’
Ms Haviland said: “Energy costs are the number one business concern, with 55% of firms saying it should be a top priority for the new prime minister.
“It’s clearly worrying that almost half of SMEs say they will face difficulties paying their energy bills once the government support runs out.
“But what is, perhaps, even more concerning is that 4% said they will not be able to pay their bills at all after March 31.”
She added: “With over 5.5 million SMEs across the UK, if this was replicated on a national level, over 220,000 small and medium-sized businesses would be in danger.
“While current government support is welcome, there is a cliff-edge looming, and firms will struggle to see beyond it.
“They need certainty on what will happen in April so they can plan with increased confidence.
“Government should not forget those businesses that will not benefit from a new energy package but will continue to require support once the current scheme ends.”
Uncertain times ahead
SMEs which renewed their energy tariffs after April 2022 reported more difficulties.
Three-fifths (60%) said they would face difficulties paying after March 2023, while 7% reported they will not be able to pay at all.
More than half (51%) will find it difficult to pay their bills between now and the end of March, during the period of the Energy Bill Relief Scheme.
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