Entrepreneur Andy Scott queries energy rescue package as his Peterborough-based REL Transport faces hefty power bill hike

The owner of a Peterborough distribution company has voiced concerns at the value to many businesses of Prime Minister Liz Truss’s £150 billion emergency plan to ease the energy crisis.

Entrepreneur Andy Scott who owns REL Transport, in Southgate Way, Orton Southgate, says it appears the PM has ‘kicked the can down the road’ on the issue of aid for businesses.

His comments come as REL Transport, which employs 70 people, expects its monthly electricity bill to rise from £9,000 a month to £48,000 a month as energy price cap rises.

Mr Scott said: “It definitely feels like the can is being kicked down the road, to allow the market to sort itself out, which is better than nothing.

“But there will still be a lot of pain if prices don’t go down considerably over the next few months, which it is hoped they will.”

Announcing her ‘energy price guarantee’ that will limit average bills to £2,500, Ms Truss said the support for businesses would last for six months while there is two years of help for households.

The help for businesses under the plan will be reviewed in three months and then any aid will be targeted at vulnerable industries.

Mr Scott said: “My only concern is what sectors are offered longer term support.

“People think warehouses are all doing really well, as people now link warehouses with Amazon and other online deliveries.

“But that is just a small part of the sector.

“We store pallets for other local businesses and have a refrigerated warehouse for food storage which has huge energy costs to cool and to power a 200,000 square feet site.

“We can't pass this on to customers so hopefully the market will settle down over the winter as just kicking the can down the road until March won't really help a lot of businesses.”

He added: “We are worried. When our current deal ends next year, our renewal was quoted at £ 48,000 per month – up from £ 9,000 per month.

“This is just ridiculous, and the site doesn’t make anywhere near that much money.

“Anyone coming off a fixed term deal, which I believe is 30 per cent of premises, will be in the same boat, so the Government has to help otherwise it will be a catastrophe.”

The Prime Minister’s energy statement has been welcomed by business lobbying group, the British Chambers of Commerce.

Shevaun Haviland, director general, said: “The price cap is a measure we have previously called for.

“It will give businesses some financial certainty on the outlook for the next six months.

But she warned: “It is crucial that there is a review in three months so there is time to plan for the end of the six-month period.

“However, given the other challenges still facing business on labour shortages, supply chain disruption, and rising raw material costs, it is unlikely that we will see greater investment from business in the short term.

“If we are to truly revitalise our economy for the difficult months ahead then there must be a clear long-term plan that gives firms the confidence to grow.”