Nearly 96% of businesses are calling on the next government to prioritise providing increased government support, which includes financial incentives, a according to a new survey.

A recent study conducted by BSI suggests that the majority of UK businesses are advocating for greater governmental assistance to achieve net zero emissions by 2050.

The research, based on a survey of over 1,000 senior decision-makers across various sectors, highlights concerns over cost and political uncertainty as significant barriers to progress.

Nearly 96% of respondents urge the next government to focus on providing greater government support.

While the majority of businesses (83%) express commitment to achieving the UK’s legally binding net zero emissions target, the report underscores persistent barriers hindering progress.

Nearly half of the surveyed businesses cite cost as a primary barrier to decarbonisation, with the cost of living / energy crisis further complicating efforts for over half of them.

Moreover, the report highlights disparities in preparedness and understanding across different sectors and business sizes.

Larger firms tend to be more advanced in their net zero practices, with a higher proportion setting targets and measuring emissions.

However, challenges such as a lack of clarity on what net zero entails and difficulties in finding suppliers with net zero credentials are prevalent across the board.

Scott Steedman, Director-General, Standards at BSI said: “Non-financial reporting will soon force businesses that don’t show leadership in their supply chains to become followers.

“From government, now is the moment for a clear policy environment that encourages organizations to invest and innovate towards net zero.

“We have made great progress in the last 12 months in aligning international standards with the net zero transition and disclosure requirements and we now have the opportunity to press ahead to scale up the implementation of best practices for decarbonization across all sectors.”

Energy regulator Ofgem has closed its consultation on the energy price cap, which was initially introduced in 2019 to safeguard consumers on variable tariffs.

Britain‘s energy regulator, Ofgem, has completed its consultation on the energy price cap, initially introduced in January 2019 to protect consumers on variable tariffs.

Since 2022, the cap has undergone quarterly revisions, prompting Ofgem to assess potential modifications to ensure fairness amidst the shift towards net zero.

Options explored include incorporating time-of-use or vulnerability considerations into the price cap and implementing measures to restrict supplier margins.

The consultation, which sought input from charities, consumer groups, businesses, billpayers and suppliers, closed on 6th May.

Image: Chones/ Shutterstock

Ofgem is consulting on ending the ban on acquisition-only tariffs, with a proposed removal date of 1st October.

Ofgem has launched a statutory consultation to explore the removal of the ban on acquisition-only tariffs, which restricts energy suppliers from offering tariffs exclusively to new customers.

The consultation considers two potential timelines for the removal: after six months, starting 1st October 2024, or at the end of the existing extension period on 31st March 2025.

The ban was initially introduced in April 2022 as a temporary measure to stabilise the market during the wholesale price crisis.

This was in response to the market volatility caused by the Russian invasion of Ukraine.

The Market Stabilisation Charge (MSC) was also implemented as part of these measures.

After a review, Ofgem decided to let the MSC expire at the end of March 2024, citing improved market stability and new policies aimed at enhancing supplier financial resilience.

However, a residual risk was identified if the ban on acquisition-only tariffs was removed simultaneously with the MSC.

Ofgem’s current preference is to remove the ban after six months, arguing that this would prompt a quicker return to price and non-price competition, resulting in better price savings and service levels for consumers.

The consultation seeks to determine the most appropriate timeline for the removal while considering market stability and supplier hedging risks.

The consultation also addresses the removal of the Market Wide Derogation for fixed retention tariffs within the same time frame.

The analysis suggests that retaining the ban on acquisition-only tariffs is no longer necessary for market stability and could result in increased costs for consumers.

The price cap will continue to protect disengaged consumers from unfair pricing.

Energy network operators have emphasised the crucial role of strategic innovation in achieving the UK’s 2050 decarbonisation targets, outlining 24 key milestones including technology development, data sharing and infrastructure adaptation.

Energy network operators have emphasised the crucial role of strategic innovation in guiding the UK towards its 2050 decarbonisation objectives.

They have unveiled 24 significant “way points” to facilitate the nation’s transition to a decarbonised energy grid.

Outlined in the Energy Networks Association‘s (ENA) Innovation Strategy Update, these milestones cover essential aspects of the transformation.

Among them are the development of new materials by 2026, the establishment of a strategic planning entity for high energy users by 2028 and the implementation of anonymised data sharing across the sector by 2030.

Looking ahead, networks aim to integrate AI-driven technology by 2040, capable of adapting to changing conditions and resilient infrastructure to address climate change-induced temperature fluctuations.

The release of these “way points” follows the launch of ENA’s Innovation Strategy Update, which also introduces an Energy Innovation Atlas.

Crafted to outline the trajectory towards meeting decarbonisation targets within set timelines, the Atlas emphasises the collaborative effort required across the energy sector.

Dan Clarke, Head of Innovation, ENA, said: “Networks recognise the central role they play supporting the decarbonisation of the UK and in providing the foundation for the greater use of low carbon technologies.

“Exploring the timeline to 2050 reveals long lead times for commercialising innovative solutions and the large amounts of investment that infrastructure development requires.

“This means we need to be sure we are pursuing the right innovative solutions and technologies today to ensure our energy networks are suited to tomorrow’s challenges.”

Over a third of UK businesses report that unpredictable energy costs have hindered growth in the past year, according to a survey

A recent report from Centrica Business Solutions reveals that more than half (56%) of UK businesses plan to increase their onsite energy generation capacity within the next two years.

The report, titled “How data, onsite generation and leadership strengthen energy control,” highlights the impact of unpredictable energy costs on business growth, with a third (34%) of businesses stating that these costs have limited their growth over the past year.

The research identifies mitigating energy market volatility as the primary motivation for onsite generation investment, with 40% of businesses citing this factor.

Other reasons include the desire to meet decarbonisation targets and transition to net zero (39%) and increasing profitability (38%).

Despite the environmental benefits of onsite generation, half of the businesses surveyed (50%) prioritise reducing energy costs over addressing their carbon footprint.

Additionally, more than a third (37%) of firms indicated they would not invest in onsite generation if it does not offer cost savings that can be reinvested elsewhere.

Christian Stella, Managing Director at Centrica Business Solutions Europe said: “Onsite generation is the next step in managing power consumption and costs more efficiently.

“It will play a vital role in steering firms through the market’s volatility as well as providing businesses with more control over their energy needs.

“While we’re still seeing businesses recognising the carbon benefits of generating their own power, money saving remains the top motivation for the majority of businesses.

“It is clear many firms still need the understanding and insight – particularly around commercial savings – to invest confidently in onsite energy generation.”

Image: Centrica Business Solutions