NEWS UPDATE ENERGY AND BUSINESS IMPACT


Half of SMEs say that heating is now a ‘luxury’


Nearly two in five small and medium- sized businesses in the UK fear they may not survive the next five years as rising energy costs put pressure on their ability to operate, new research has found. The study, published by Cadent and


Dramatic drop in emissions from cement industry


One of the most energy intensive sectors of the economy is reporting an impressive drop in carbon emissions. According to a new report from


the Mineral Products Association, entitled ‘Roadmap to beyond net zero’, emissions from the UK’s concrete and cement industries are down 63% on 1990 levels – but most impressively 21% down on the 2018 baseline established when the industry formally set its net zero targets. The industry now accounts for just 1.5% of UK emissions compared to a global average of 7%. But the reduction in emissions is


also partly a function of the sector – which still boasts over 1,000 sites, a workforce of nearly 90,000, and an economic contribution of £6.7bn a year – investing hundreds of millions of pounds in cutting edge projects that have started to curb its carbon intensity. According to the new report, alternative fuels such as waste streams and biomass now account for 54% of the thermal input required to produce clinker, replacing the equivalent of over half a million tonnes of coal every year. A further 1.55 million tonnes of


CO₂ has been absorbed from the atmosphere through carbonation processes, which are being optimised through new low carbon, CO₂ absorbing concretes. Fuel switching has delivered a


further 6% cut in emissions since 2018, while lower carbon cement and concrete mixes have contributed an 11% cut, and transport efficiencies have saved another 2%. Much of the initial fall in emissions since 1990 was driven by deindustrialisation, as concrete and cement producers have migrated overseas in pursuit of lower costs. Total domestic cement production


has fallen 18% since 2018, but this is a significantly lower percentage than the 21% drop in emissions achieved.


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Thinks Insight & Strategy as part of Cadent’s annual Energy Diaries series, surveyed 400 SMEs and 144 charities. It found that 39% of SMEs were unsure about their long-term future, while 52% of charities said the same. Only 22% of microbusinesses described themselves as thriving. Heating emerged as a particular


concern. Half of SMEs said keeping their premises warm had become unaffordable, with 50% now viewing heating as a ‘luxury’. Among charities, 60% said they shared that view. More than a third of SMEs (37%) reported passing increased energy costs on to their customers. These pressures are reshaping


services. 41% of charities said they had reduced or altered the support


Clean power generation contributing nearly 75% of UK


electricity Almost three-quarters of the electricity generated in Great Britain in 2024 came from low- carbon sources, according to new government figures. The Department for Energy Security and Net Zero’s latest quarterly Energy Trends report shows that 73.8% of electricity was produced from renewables and nuclear, up from 68.3% in 2023. The statistics are the first official indication of progress towards the government’s target of generating 95% of electricity from clean sources by 2030. Renewable energy alone accounted for 54.5% of UK electricity in the second quarter of 2024, setting a new quarterly record, up from 51.7% over the same period the previous year.


The report highlights a 10%


increase in offshore wind output and a 27% rise in solar generation, attributed to expanded capacity


how higher bills were forcing difficult trade-offs, from reducing services to limiting investment in sustainability. In response, it has partnered with the Energy Saving Trust to provide free advice for SMEs and charities, including information on government schemes and practical tips for reducing costs. Dr Angela Needle, director of


strategy at Cadent, comments: “SMEs and charities are vital pillars of our communities, and yet they are facing extraordinary challenges, with many doubting their ability to keep their doors open.


“Heating should not be considered


they provide in order to manage bills, with some reporting monthly energy costs of more than £3,000. Rising prices have also led SMEs to freeze recruitment, cut staff and scale back sustainability investment. Environmental goals are


increasingly being sidelined. 34% of charities said sustainability was no longer a priority due to financial strain. Among SMEs, 58% called for clearer, centralised information on energy efficiency, a demand echoed by 78% of charities. Cadent says the findings showed


a luxury, but our findings show that for half of SMEs and three in five charities, this is the stark reality. Rising costs are forcing difficult trade- offs, from cutting staff to scaling back vital services, and that has a knock-on effect on the people and communities who rely on them most. Our concerns are the impact on the most vulnerable in society.” The Energy Diaries series, now in


its fourth year, is designed to capture how different consumer groups are experiencing energy challenges during the UK’s cost of living crisis.


For all the latest news stories visit www.eibi.co.uk


and record hours of sunshine. Overall, low-carbon sources reached a quarterly record of 69.8%, exceeding the previous high of 69.3%. At the same time, electricity generated from fossil fuels fell to a record low of 26.7%, with wind output surpassing gas for the third consecutive quarter. RenewableUK’s director of future


electricity systems Barnaby Wharton comments: “It’s great to see that Britain is making excellent progress towards clean power by 2030, with a significant increase in 2024 compared to the year before, as we roll out vital new wind and solar projects,


strengthening our capacity to generate secure homegrown power. This will insulate bill payers in the long term against the volatility of international gas prices which caused the energy crisis. “It further demonstrates Great


Britain’s successful transition from fossil fuels to clean power. As well as keeping the nation powered up, we’re creating new jobs in places like Teesside, the Humber, East Anglia, the Moray Firth, across the south of Wales and in Belfast. We now have 2,000 supply chain companies based in 70 constituencies all over the UK.”


EIBI | OCTOBER 2025


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