Energy-intensive industries to be hit hardest by crisis

The UK's most energy-intensive industries will likely be impacted most by the ongoing energy crisis, according to a report from the Office for National Statistics (ONS).

According to the survey, the UK's most energy-intensive industry in 2019 was electricity, gas, steam and air conditioning supply, with 24% of the industry's total purchases being spent on energy, followed by 21% in the transportation and storage industry.

Businesses in these industries are therefore likely to be the most affected by rising fuel costs and are most likely to see a significant impact on production. They may also be under more pressure to raise their own prices and be more vulnerable to closure.

Other energy-intensive industries include waste management and hospitality.

The report also warned that micro-businesses with fewer than ten employees, which had a higher energy intensity in 2019 compared to larger firms, were likely to face difficulties.

Martin McTague of the Federation of Small Businesses said:

"To make the matter worse, some big energy companies ask small firms for a large sum of upfront payment, out of fear that they could go bust because of unaffordable bills, or they'll refuse to supply their small business customers."

Talk to us about your business's energy bills.

 

Testimonial

“The service received is of the highest order – thorough, professional, timely, appropriate, clear, concise – and together with their personal service, makes CDJ excellent to work with and I would not hesitate in recommending them.”

Jason Sorrel – Network Intellect