Businesses support delaying the Clean Power 2030 target by five years

UK businesses are warning of a potential energy cost shock as the country pushes towards its Clean Power 2030 target.

More than 400 large energy users were surveyed for npower Business Solution’s (nBS) latest Business Energy Tracker, with 93% concerned about the financial impact of the clean energy transition.

One in 10 businesses now support delaying the Clean Power 2030 target to 2035, while 86% want additional financial support.

Analysis suggests the highest peak period for business energy costs between now and 2031 could arrive in winter 2027/28. Costs could reach around £523 per megawatt hour during the Capacity Market charging period in January 2028.

Anthony Ainsworth, Chief Operating Officer at nBS, said: “While we are starting to see calls for the clean power target to be delayed, it is important to note that businesses do not want the target to be scrapped.

“They understand the multiple benefits that a homegrown, renewable system will bring. However, costs that they can’t control are impacting confidence and competitiveness. It’s like trying to pay off a mortgage in five years rather than over 30 years.”

The report also highlights a growing gap between UK and European energy costs. Medium-sized, large and very large UK businesses are paying 90%, 130% and 110% more respectively for electricity than the EU14 median.

Energy has remained the top business risk for five consecutive years, while 78% expect costs to rise over the next 12 months.