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Sep 8, 2022

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."

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