ABERDEEN & Grampian Chamber of Commerce has responded to measures, announced by the new Prime Minister Liz Truss this morning which will reduce energy bills.
Businesses will see their energy costs capped at the same price per unit that households will pay under the government’s new plans.
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However, the scheme for business will run for six months only — in contrast to the two-year cap being offered to domestic customers — and will only be extended for specific sectors deemed ‘vulnerable’ thereafter.
Speaking in the House of Commons earlier, Ms Truss also delivered a vote of confidence in the North Sea energy sector as she announced that her government would grant over one hundred new North Sea licences to secure domestic supply of oil and gas. She also stated that she was “not giving in to calls for a windfall tax”.
Additionally, the Prime Minister noted her intention to accelerate deployment of low carbon technology including carbon capture and storage, offshore wind and hydrogen schemes.
Commenting, Aberdeen & Grampian Chamber of Commerce Chief Executive Russell Borthwick said:
“We welcome the two-year reassurance handed to families across the North-east, but businesses need the same certainty.”
“Failure to provide clarity beyond the next six months is a mistake and will provide little comfort to firms facing an onslaught of rising costs today. Greater intervention will undoubtedly be required before the spring to hold back a wave of insolvencies.”
“However, the commitment to return the UK to being a net exporter of energy is good news for our region. After a ten-month campaign by this Chamber calling for a more pragmatic approach to energy, firms can now invest in transition with the certainty that their efforts will not be undermined by confidence-sapping windfall taxes.”
“And we hope to see action to match the government’s rhetoric on accelerating deployment of low carbon technologies. That must include moving the Scottish CCUS Cluster to Track 1, leveraging more investment and regulatory pace into offshore wind and hydrogen and ensuring the North-east of Scotland is granted the Green Freeport status that will power the region towards being Europe’s net zero capital.”
“Energy is just part of the jigsaw in terms of rising costs of doing businesses. The price of materials continues to soar, chronic labour shortages are hampering growth and a stable competitive tax regime is needed if we are to raise productivity and our national economic output.”
“While it’s a welcome start for the new Prime Minister, there’s plenty still to tackle in her in-tray — and we hope to see much more for business over the coming weeks. Struggling firms who still wear the scars of the pandemic need long-term certainty to prosper once again.”
