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News Release from: McKinnon and Clarke | Subject: Electricity costs
Edited by the Processingtalk Editorial
Team on 08 December 2004
Ofgem causes electric price shock alert
Following this week's announcement by Ofgem, energy analysts at McKinnon and Clarke are warning UK businesses not to underestimate the impact of rising electricity costs on their profit margins
Following this week's announcement by Ofgem, energy analysts at McKinnon and Clarke are warning businesses not to underestimate the impact that rising electricity costs could have on their profit margins Ofgem, the energy regulator, announced that some businesses may face up to 12% increases over the next year, with the worst hit areas including South East England, the North West and Scotland
This article was originally published on Processingtalk on 27 Sep 2004 at 8.00am (UK)
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The rises are being made in order to fund increased investment in improved efficiency of the electricity network, as well as improving quality of service and accommodating growth in distributed generation.
The energy analyst says that, even in a rising market, significant savings can be made.
David Hunter, International Business Manager of Electricity for McKinnon and Clarke explains: "These charges will result in higher costs for both commercial and domestic consumers and there will undoubtedly be an impact on operating costs as a result.
On top of higher charges these costs are effectively paying for the restructuring of the distribution networks for the UK.
"Now it is more crucial than ever for consumers to make the negotiation of their energy contracts a priority".
The news will come as another blow to businesses who, on top of 40% rises in wholesale prices this year, will now have to endure a further cost that is out of their control.
The price change will also affect domestic customers.
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