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11 October 2012 | Adam Leach
Energy bills are expected to rise by almost €10 billion (£8.1 billion) across Europe in 2013, with rising taxes and transmission charges effectively eliminating the cost benefits businesses achieve by increasing energy efficiency.
Research conducted by EnergyQuoteJHA forecast that next year both electricity and gas prices will increase significantly, with an additional €9.5 billion (£7.6 billion) being spent by energy buyers across Europe. Spend on electricity will contribute an expected €5.3 billion (£4.3 billion) extra being spent, while an extra €4.2 billion (£3.4 billion) will be spent on gas.
Gary Worby, managing director of EnergyQuoteJHA, said: “The sheer magnitude of these numbers shows that it is more important than ever before for industrial energy buyers to take full advantage of the range of risk and procurement tools available to them.”
The company attributed the predicted rise in costs to a number of factors, including rising transmission and distribution costs, rising taxation on power, an increase in demand from Asia and an increase in feedstock prices.
While increases are predicted across Europe, some countries will be hit harder than others, according to the research. Dutch companies will feel the fullest impact, with rises of up 12.5 per cent, while German, Austrian and Belgian firms are expected to experience a rise of over 10 per cent. In the UK, prices will rise between 5 and 7 per cent.
The report said as a result of the rises, companies are failing to reap the benefits of adopting more energy efficient practices or developing on-site generation facilities.