Disparity in third party charges highlighted

Businesses in different parts of the country face significant differences in the third party charges they pay on energy bills, according to a new report.

Data from Cornwall Insight’s latest Business Energy Cost Forecast found that small and medium sized Enterprises (SMEs) in North Wales and Merseyside are forecast to pay 13% more in electricity bills next financial year than their counterparts in London.

The disparity is due to different regions having higher non-wholesale costs, mainly due to the level and structure of network charges.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: “These forecasts highlight the stark regional disparities in electricity costs for SMEs. Businesses are struggling with high energy costs across the country, but the steep third-party charges faced by those in particular regions only serves to highlight the problems faced by those businesses that could already be operating on razor-thin margins.”