Farm groups criticise energy support package for businesses

Farm businesses are set to receive a six-month government support package to reduce their energy bills, but rural campaigners say it’s not enough.

Prime minister Liz Truss announced on Thursday 8 September that businesses would receive an “equivalent guarantee” to that for households, which have had prices capped at a rate that will see a typical household pay no more than £2,500/year for two years from October.

After the initial six months, the government will offer targeted support for vulnerable industries such as hospitality and local pubs. NFU Scotland says farm and agri-food businesses must be included too and other organisation want to see standing charges capped too.

See also: Farm businesses facing energy bills increase of up to 400%

For businesses that rely on oil rather than gas, there will be a dedicated support fund.

Although the six-month guarantee has been welcomed by farming unions, including the Tenant Farmers Association, its chief executive, George Dunn, said it would do little to provide the confidence needed for farm businesses to make the necessary long-term plans for the growing of crops, the raising of livestock and the production of livestock products.

Six months has been described as too short a time horizon by the Country Land and Business Association (CLA).

Its president, Mark Tufnell, described the outlook for rural businesses this winter as grim.

“A cap on the unit rate makes sense, but the government must act to stop the increase in standing charges,” he insisted.

The CLA also wants an immediate cut to regulations on renewables, such as small-scale solar providers, and business rate holidays. 

Meanwhile, an electricity price survey by NFU Scotland, which closed on 7 September and involved more than 110 businesses, revealed that for nine out of 10 farming families, electricity supplied to the farmhouse is provided as part of the business.

Previous and future domestic price caps therefore do not apply.

“From a business perspective, nine out of 10 farmers and crofters who replied to the survey were previously paying less than 20p/kWh for their electricity and are now having to deal with renewal rates and quotes coming in at up to 92p/kWh,” said NFU Scotland president Martin Kennedy.

He wants the government and energy companies to do more to help farming businesses that are considering investing in renewable energy. 

“Help and support must be provided to allow them to generate their own electricity from renewable sources,’’ he said.