THINKING BUSINESS
a blog by Chris Barrow

The increasing cost of energy is getting horribly real



We have a mini-budget today and like you, I'll be watching to see what the new Government have in store for us. I'll wait until later today for the media and commentators to sift through the political spin and tell us what it really means.


This morning, an email from our energy provider, E-on, to update us on further increases.


On 1st April 2022 (not very funny) our direct debit was increased by 56%.


On 1st October it will be increased by a further 7% - but before I cheer, I'm reminded that this takes into account the Truss energy cap and will only apply from October to March.


In April next year, there will be a further 19% to add on.


Overall, from April 2022 to 2023, that will be an increase of precisely 98.77%.


All of that, of course, assumes current usage patterns - a colder winter could aggravate the numbers.


E-on have kindly also projected our usage through the whole of next year, estimating that the bill for the year end October 2022 is likely to increase by a further 30% through to October 2023.


You cannot fault E-on for transparency but it does make for sombre reading on a Friday morning.


We are very lucky - we can afford it and, in the scheme of things, it is an irritation.


Others no so lucky and I wonder how many dental team members and patients have had a similar email this morning.


A week ago today I had a good old rant about wages and prices. You might want to read or refresh that HERE.


I remain convinced that you have to increase wages and prices to avoid being caught with your financial pants down.


Equally, as an owner, manager, parent, friend, neighbour - be mindful of the effect these price increases are having on the mental health of those around you.


You are surrounded by very worried people.


The balance between profit and ethics becomes even more challenging to maintain.


I know you might be getting tired of hearing me say this.


Be the beacon of light.









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