The press release issued by PWC on 10 January 2023.
Vicky Parker, Sector Leader for Power and Utilities at PwC UK, said:
“A warmer than normal Winter has already helped energy prices to fall in recent months, from historic highs last Autumn, with European gas storage remaining at comparatively high levels. However, gas and power prices are expected to remain volatile and above seasonal average levels (40-60p/therm). As such, businesses will welcome the certainty on how the government will continue to support them with energy prices, although the level of support will be materially lower after March.
“Customers who signed energy contracts at the end of August last year face a greater than 50% cut in government support: from £55.05/MWh to £19.61/MWh for electricity and from £17.64/MWh to £6.97/MWh for gas. Given these substantial reductions, the imperative for businesses to take action to control energy costs is greater than ever. With the outlook for high energy prices continuing, firms need to start thinking about building their longer term energy resilience.
“While the additional support for energy intensive industries will be welcome for those sectors, the new scheme overlooks those other sectors – like hospitality or social care – which may be exposed to high prices and struggle to pass these costs onto their customers or reduce their usage. It remains to be seen how these firms will manage in the coming months.”