'Government’s energy cut is not enough to help struggling Derbyshire businesses long term'

Last week the Government announced a new scheme to support businesses amid another soar at energy prices. The plan includes cutting gas and electricity bills by half for firms around the country, starting on Saturday, October 1.

The scheme sheds light on the future of businesses around Derbsyhire as many were worried about surviving the winter.

Chris Ionnides, owner of Chesters Fish and Chips restuarant, in Chesterfield, had been struggling with increasing energy prices for almost a year. Last October Chester’s electric bill went up from £15,000 to £40,000 a year and gas from £10,000 to £30,000 during the same time.

Chris, who has been appealing to the local MPs for more support for businesses, said the the government’ scheme was ‘a good start’.

He said: “It's a bit of a relief. I’m happy that they have started to really look into the struggles the businesses are facing at the moment. A lot of businesses were at the risk of closure or have already announced they will not be able to stay open, so something has to be done rather quickly.

“It's a good start and will help us, but I still think more needs to be done. I don't think just a cut on the energy for six months is going to sort out the problem. The Government needs to look a little bit more into our struggles than just focusing on the energy.

“ And realistically the long term plans need to be in place. The question is what comes after the six months? We need to be clear of what businesses are signing into.

“For instance, what comes after the six months if you are assigning a name to a contract that costs hundreds or thousands of pounds? We have got a relief for six months. We are still in contract for another year and a half, if you do a two year contract. How are we going to pay for the rest of it?”

Responding to the Government’s announcement East Midlands Chamber chief executive Scott Knowles added: “We have been calling for the Government to introduce an energy cap for businesses for some time now, so this intervention marks a significant step in the right direction in helping our firms with some of the cost pressures that have been piling up on their doorstep.

“It will allow many companies that were facing an extremely challenging autumn and winter period as a result of eye-watering energy bills to keep going. This is also an important support package for consumers as it prevents some of these escalating costs from being passed down to end customers, which ultimately continues to drive inflation.

“Almost six in 10 (58%) East Midlands businesses had indicated in our latest Quarterly Economic Survey they would be forced to raise their own prices due to the increased costs they are facing. It’s important to note, however, that the exact level of support will vary greatly from business to business depending on the detail of its contract, so some will inevitably do better than others. Getting this saving passed on to business as quickly as possible should also be a priority as every day puts some firms closer to the edge.”