Warning to business over rising energy prices

1 November 2004 – An international energy consultancy firm has warned that rising energy prices could mean that some small and medium enterprises are forced into closure.

International utilities specialist McKinnon and Clarke (M&C) has forecast that escalating prices in the energy market may mean that many businesses have no option but to source a new supplier and renegotiate their contracts.

M&C managing director, Simon Northrop, said, “There are two main issues that need to be addressed. One is rising costs for utilities and the other, just as importantly, is energy efficiency. Many businesses delay the signing of contracts for electricity and gas business, but could find that prices will continue to rise.”

A fear is that a huge increase in a matter of months could be unsustainable to businesses that have been made vulnerable by delaying the signing of contracts.

Northrop said, “What businesses need to bear in mind is that, even with rising prices, significant savings can still be made. While price hikes are out of the control of the consumer, energy consumption and efficiency can be easily controlled.”