Bbc
Mike Jones said higher costs lead certain customers through the border
A dry cleaner said that companies at only 10 miles can charge a quarter of the price of services due to different energy prices between regions.
Small and medium -sized enterprises in the northern Wales and Merseyside should pay 13% more in electricity bills than London from this month due to energy costs not in general called third party costs.
Mike Jones, who directs Borras dry cleaners in Wrexham, said that his business was “penalized” while being billed 8% more than the United Kingdom average.
The forecastist of the Energy Bill Cornwall Insight said that forecasts highlighted the “regional disparities Stark” faced by small businesses.
Borras’ dry cleaners in Wrexham said the standing charge should be the same everywhere
Jones said that his operating costs were already high and that the increase in energy bills would already affect beneficiary margins.
He said: “Pre-Cavid, we spent around £ 2,000 to month and now we are likely to pay £ 10,000.”
He said that he has to face the highest accusations in the United Kingdom was hard from the north of Wales and Merseyside.
Small businesses should pay nearly £ 13,000 more per year than the average company as a type for the United Kingdom and £ 19,000 more than London, according to research by Cornwall Insight.
He added: “The problem is that at 10 miles on the road, there is an English company that pays a fraction of the price we are.
“Customers can find a business through the border that can serve them at a quarter of the price we can do.
“We are a local business, employing a local population and we are penalized – why? No one knows.”
What are third party costs?
The fees of third parties differ from one region to another and represent around 60% of a corporate electricity bill.
They include all electricity costs outside the price of fuel itself and are divided into network costs such as distribution and transmission costs, and political costs such as financing of government initiatives such as renewable energies.
Borras Dry Cleaners provides detergent services for hotels and other companies
Cornwall Insight has conducted research on how companies would be affected by the difference in costs through the United Kingdom.
About 81% of British companies expect to increase prices due to the rise in energy bills on Tuesday, he revealed.
Dr. Craig Lowrey, main consultant at Cornwall Insight, said: “These forecasts highlight the regional Stark disparities in electricity costs for SMEs (small and medium -sized enterprises).
“The abrupt accusations of third parties faced by specific regions, only serves to highlight the problems encountered by companies that could already operate on thin razor margins.”
Mr. Jones said: “You look at a competitor and you will think” who will go first? “If the company is going first, you undertake its work.
“Then you just take more energy costs. We cannot increase our prices because it is impossible. People will stop using us.”
The company is determined to maintain low prices despite higher invoices
The increase is in addition to recent increases in national employers’ insurance and other public service invoices, which means that the public is faced with even higher prices as companies transmit additional costs.
Dr. Lowrey said: “It is now time for companies to review their energy strategies, to explore switching opportunities and to consider efficiency measures to help facilitate cost increase.”
