Companies 'must confront hard truth' over Iran war, says Shrewsbury business boss
CES managing director issues warning over the country's energy security
The head of a Shrewsbury electrical engineering company says the ongoing conflict in the Middle East is forcing UK businesses to confront a hard truth about their dependence on global energy markets.
Joe Collison, managing director of CES based in Ford, feels the current crisis in the Middle East has thrown energy security into sharp focus.
Electricity spot prices are tied directly to liquified natural gas pricing across the European market, says Mr Collison, meaning this isn't a temporary blip.
He said: "We're looking at a world where Middle Eastern LNG supply will be significantly reduced for years to come.
"The question isn't whether your business will feel the impact but how prepared you'll be when it does."
As we move into the stronger solar months, renewable assets start to mitigate some of the cost hikes driven by global events but Mr Collison feels that mitigation simply is not enough.
He added: "This is the moment for businesses to prepare for structural change.
"Over the past few weeks, we've seen a ten to 15 per cent increase in enquiries from companies serious about securing their energy costs.
"More significantly, projects that have been stalled for months - held up in boardroom discussions and budget uncertainty - are finally moving forward. Companies are tired of being exposed to forces beyond their control."
He pointed out that solar PV was an obvious starting point.
"We're already seeing real momentum in electric vehicle charging at fleet level, where companies are making the shift from diesel and petrol to electrification," he added.
"Now, with the £1 billion in support for commercial fleets announced by the government recently to support decarbonisation at scale, the help is there.
"Rather than chasing alternative sources of LNG supply, which is essentially a game of musical chairs on a global scale, we should be doubling down on renewable schemes and building out the infrastructure to support them.
"Energy independence isn't coming. It's here and it's becoming a competitive requirement for any business serious about future-proofing its operations."
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