Scottish companies are feeling the squeeze from rising vitality prices, with almost 9 in ten (88%) saying it has impacted them – and 62% reporting a big affect.
New analysis* carried out by Diffley Partnership and Stratcom UK commissioned by Octopus Power suggests a stark actuality for companies throughout Scotland.
Larger vitality costs are affecting jobs, funding and buyer costs, with two thirds (66%) of companies saying it has influenced hiring selections and greater than three quarters (77%) saying it has contributed to cost hikes for purchasers.
Whereas pessimistic in regards to the present state of affairs, companies look like constructive concerning the best way ahead.
The analysis reveals overwhelming assist for a shift to zonal pricing – a system the place vitality prices mirror the quantity of vitality produced in a area.
Two thirds (64%) assist vitality pricing reform over simply 14% opposition. The best ranges of assist got here from manufacturing and IT sectors, which may stand to learn essentially the most from zonal pricing.
With plenty of wind farms in Scotland, such a transfer would give Scottish companies and households a few of the lowest costs in Europe.
If vitality costs have been to drop considerably, companies report they might enhance staffing ranges (64%), make investments extra of their enterprise (74%) and even carry advantages outdoors of business by reducing costs for purchasers (70%).
This analysis comes off the again of a landmark report by FTI Consulting commissioned by Octopus Power**, which discovered that introducing zonal pricing throughout the UK may save households and companies £55 billion on vitality payments over the approaching many years.
Greg Jackson, Founding father of Octopus Power Group, stated: “Below our present system hard-up Scottish households and companies are uncovered to a few of the highest vitality costs in Europe, whereas wind farm homeowners are paid almost £2 billion yearly to show off low cost inexperienced vitality in Scotland that might be serving to out native customers.
“This analysis reveals the established order is indefensible given its affect on jobs and funding. It’s hurting households and companies and has received to vary if we wish to develop.
“Under zonal pricing, the whole country would save £55bn on bills, prices in Scotland would be amongst the cheapest in Europe and Scottish businesses would thrive.”
A Scottish enterprise proprietor who responded to the survey stated “(high energy prices) have affected pay increases and the number of new positions we hire.”
One other added: “Scottish businesses must benefit directly from renewable energy generated onshore and offshore in Scotland.”
Because the UK seems for methods to sort out excessive vitality prices, Scottish companies are making it clear: a fairer, greener system that rewards renewables might be the important thing.
Notes
* Stratcom UK and Diffley Partnership survey of 234 Companies throughout all sectors and sizes, carried out throughout February 2025
**Impact of a Potential Zonal Market Design in Great Britain – FTI Consulting and Octopus Power, February 2025
