How will it affect bodyshops?
The increase refers to the wholesale cost of energy, wholesale costs make up around 35-40% of an energy bill, the rest is made up of non-commodity charges which includes levies, transportation, distribution etc.
The bodyshops will be affected if they are currently out of contract or have contracts due for renewal in the coming months. If they already have a contract in place then they won’t be affected by the price hikes until the end of their current contract.
Sites that have supply contacts coming up for renewal in the next 3 to 6 months will see significant increases in their energy costs.. At the current market levels body shops could be seeing increase of over 100%
To put this in context, a typical bodyshop could currently have an annual energy spend across gas and electricity of circa £50k, dependant on their contract and status this could increase to over £100k in the current market conditions.
If a commercial energy supplier goes out of business then Ofgem must appoint an alternative provider, the bodyshop won’t be without a physical supply.