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Press Release

30.07.2010

UK businesses face abrupt rise in energy bills

Businesses will face an abrupt rise in energy bills as a result of the governments plans tocut carbon emissions and secure energy supplies.

The Conservative-Liberal Democrat coalition published what it said was the first yearly estimate of the impact of energy and climate change policies on households and businesses bills. Thecomprehensive plan comes as a government attempt to cut carbon emissions and end Britain'sdependence on risky oil and gas imports.

The estimate shows that compared to energy bills with no government actions, combined annual gasand electricity costs for households would rise only 13 by 2020, but those for businesses would

increase by hundreds of pounds a year because of businesses obtaining less benefit from energy-efficiency measures available to households.

The estimate of the impact on energy bills came alongside the first annual energy statement in July2010, as previously reported by Envido. It sets out DECCs latest assessment of t he impact of energy and climate change policies on gas and electricity prices and bills, and updates analysis thatwas previously published in July 2009.

The CBI is concerned that mooted government ambitions for a higher target forrenewable energy would push energy bills even higher

The publication of the impact of Energy and Climate Change policies on energy bills was welcomed

by many groups and businesses involved in supplying and financing low-carbon power. Howeverthere were widespread concerns about continuing lack of detail, and that progress would be heldback by a raft of new consultations and reviews of individual initiatives. This includes the promise toinstall "smart meters" in every home and testing new carbon capture and storage technologies.Funding for many policies announced today will also depend on the outcome of a tough autumnspending review.

The Confederation of British Industry (CBI), in response to big projected increases in energy bills,said that while business accepted there would be increased costs in energy bills, it was concernedthat mooted government ambitions for a higher target for renewable energy would push energyprices even higher. The CBI urged ministers to help high energy users who were competing ininternational markets, such as steel companies. Matthew Farrow, the CBI's head of energy, said that

other businesses could pass on the higher energy bills to customers.

According to Huhne, the projections assumed fossil fuel prices remain level at approximately US$80(51.46) a barrel of oil. Business energy bills would rise by less - and domestic bills be cut - if oilprices rose by the much higher estimates of the International Energy Agency or the US government,because of energy efficiency policies.

One of the first steps in taking control of the energy bills of your organisation is to understand theenergy use within their premises by undertaking an Energy Assessment. This will help you identifythe opportunities for improving energy efficiency. Envidos Energy Assessors will assess currentperformance and identify priority areas for action, with the best return.

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About Envido

Envido are the UKs leading provider of energy, carbon and sustainability solutions for private andpublic sector organisations.

We help our clients reduce their business carbon emissions - helping them to comply with climate

change legislation and save money at the same time.

Media contact

Nathalie GoadHead of Marketing and CommunicationsEnvido Ltd.+44 20 7199 0090www.envido.co.uk

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