Scottish companies are feeling the squeeze from rising power prices, with almost 9 in ten (88%) saying it has impacted them – and 62% reporting a major affect.
New analysis* carried out by Diffley Partnership and Stratcom UK commissioned by Octopus Power suggests a stark actuality for companies throughout Scotland.
Larger power costs are affecting jobs, funding and buyer costs, with two thirds (66%) of companies saying it has influenced hiring choices and greater than three quarters (77%) saying it has contributed to cost hikes for patrons.
Whereas pessimistic in regards to the present state of affairs, companies look like optimistic concerning the way in which ahead.
The analysis reveals overwhelming assist for a shift to zonal pricing – a system the place power prices replicate the quantity of power produced in a area.
Two thirds (64%) assist power pricing reform over simply 14% opposition. The very best ranges of assist got here from manufacturing and IT sectors, which might stand to learn probably the most from zonal pricing.
With lots of wind farms in Scotland, such a transfer would give Scottish companies and households a few of the lowest costs in Europe.
If power costs had been to drop considerably, companies report they might improve staffing ranges (64%), make investments extra of their enterprise (74%) and even deliver advantages outdoors of trade by decreasing costs for patrons (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 might save households and companies £55 billion on power payments over the approaching a long time.
Greg Jackson, Founding father of Octopus Power Group, stated: “Underneath our present system hard-up Scottish households and companies are uncovered to a few of the highest power costs in Europe, whereas wind farm house owners are paid almost £2 billion yearly to show off low-cost inexperienced power in Scotland that may very well 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 bought to vary if we need to develop.
“Underneath zonal pricing, the entire nation would save £55bn on payments, costs in Scotland could be amongst the most cost effective in Europe and Scottish companies would thrive.”
A Scottish enterprise proprietor who responded to the survey stated “[high energy prices] have affected pay will increase and the variety of new positions we rent.”
One other added: “Scottish companies should profit straight from renewable power generated onshore and offshore in Scotland.”
Because the UK seems for tactics to deal with excessive power prices, Scottish companies are making it clear: a fairer, greener system that rewards renewables may very well be the important thing.
Notes
* Stratcom UK and Diffley Partnership survey of 234 Companies throughout all sectors and sizes, carried out throughout February 2025
**Impression of a Potential Zonal Market Design in Nice Britain – FTI Consulting and Octopus Power, February 2025