Retailers demand energy bill cuts as costs rise by £440m
Retailers have urged John Healey to slash green policy costs from energy bills, warning that their electricity costs are set to soar by £440m this year. The British Retail Consortium (BRC) – which represents top retailers including Tesco, Sainsbury’s and Marks & Spencer – has warned that rising “policy costs” on energy bills will inevitably [...]
Retailers are lobbying for a reduction in energy bill costs, warning that their electricity expenses are set to increase by £440 million this year. The British Retail Consortium (BRC), which represents major retailers such as Tesco, Sainsbury's, and Marks & Spencer, has expressed concern that rising policy costs on energy bills will lead to higher prices for consumers.
The Chancellor has been urged to take immediate action to cut the various policy levies that are contributing to the surge in energy costs for high street businesses, according to the BRC's chief executive, Helen Dickinson.
Electricity costs for UK retailers are projected to rise from £2.72 billion last year to £3.16 billion this year, with the majority of the increase attributed to government charges rather than the global rise in energy prices caused by the Iran conflict. Transmission Network Use of System charges, intended to fund grid construction and repairs, are expected to surge by 72%, adding £200 million to retailer's electricity bills.
Other policy costs include the renewables obligation, which is set to increase by 2.5% to £646 million this year, and the climate change levy, which is on track to rise by 2.2% to £151.7 million.
As a highly energy-intensive sector, retail relies on 90% electricity for its energy needs. BRC's Dickinson emphasized that retailers' energy bills are contributing to the rising cost of everyday essentials for shoppers. She added that significant policy charge cuts on electricity bills would provide retailers with the breathing space needed to invest in keeping prices low for households and preserving jobs.
Retailers have called for action on various costs, including employment expenses and business rates, during the upcoming Budget. Department store chain John Lewis has cautioned against a "terrible" business rates raid on big retailers, while the Co-op blamed Labour's national insurance hikes for recent job cuts. The Treasury has been asked for a response.
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