Retailers have called on Chancellor John Healey to cut green policy costs from energy bills, as their electricity costs are anticipated to increase by £440m this year. The British Retail Consortium (BRC), which represents major retailers, has warned that rising "policy costs" on energy bills will lead to higher prices for consumers.
According to BRC research, the electricity costs for UK retailers are expected to rise from £2.72bn last year to £3.16bn this year. The industry body stated that government-levied charges are responsible for most of this increase, now constituting two-thirds of retailers' electricity bills.
BRC chief executive Helen Dickinson said that the Chancellor "must take immediate action to reduce the plethora of policy levies" impacting high street firms' energy costs. She added that significant cuts to policy charges would "ease pressure on retailers, giving them breathing space to invest in keeping prices down for households and keeping people in jobs."
Specific policy costs include Transmission Network Use of System charges, which are set to increase by 72 per cent, adding £200m to bills. The renewables obligation is projected to rise by 2.5 per cent to £646m this year, and the climate change levy is on track to increase by 2.2 per cent to £151.7m.
Retailers have also urged the government to address other costs, such as employment costs and business rates, at next month's Budget.