UK businesses expect price hikes amid rising energy costs

Almost a quarter of UK businesses considering government energy support as essential for survival, according to a new survey.

Nearly 81% of UK businesses anticipate increasing prices in response to high energy costs in the next two years.

According to a new survey conducted by PwC, a quarter of organisations deem government energy support crucial for survival.

Over the past two years, 77% of businesses experienced a moderate to significant impact of high energy costs on the prices of their products and services, with 67% citing a negative effect on profits and margins.

Looking ahead, 81% expect further price hikes and 72% anticipate a negative impact on profits due to high energy prices.

The survey, encompassing 750 UK organisations from both the private and public sectors, highlights the economic challenges posed by high energy costs.

Barriers to mitigating these costs include a lack of immediate solutions and environmental considerations, each cited by 63% of respondents.

While organisations prioritise objectives like reducing energy consumption, carbon emissions and energy costs, the survey indicates a division in energy strategy objectives.

Efforts to mitigate costs include reviewing energy procurement strategies, improving energy efficiency and adopting corporate power purchase agreements.

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