WREXHAM and Flintshire companies are at risk of being devastated by skyrocketing energy prices if something isn't done to help them, a business leader has said.
Ofgem announced last week that its new domestic energy price cap would rise by 80 per cent in October, taking the average domestic bill in England, Wales and Scotland to £3,549 a year.
Askar Sheibani, CEO of Comtek Network Systems UK Ltd and chair of Deeside Business Forum, has spoken of his concerns about what that means for North Wales businesses.
He said the costs will be devastating for a lot of smaller businesses and organisations, particularly moving into the winter.
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Mr Sheibani is concerned the situation will be very challenging for manufacturing firms in Flintshire and Wrexham, explaining: "So far the only concentration for both the UK and Welsh Governments has been on domestic issues and the public.
"They have totally and utterly ignored small businesses and are allowing a lot of them to go bankrupt.
"It is a shame that they did help them during covid but now are putting them in the worst possible danger - so many of these businesses are now really concerned about what is going to happen and what their future is.
"They are allowing this possible massacre to happen among smaller businesses.
"If businesses go bankrupt, people will lose their jobs.
"We have a lot of manufacturers in Deeside and Wrexham and they consume a huge amount of energy.
"They are going to suffer very badly.
"And businesses are suffering in silence - they are frightened to come out and say what kind of trouble they are in because they could lose customers, or suppliers."
Mr Sheibani has suggested steps which could be implemented to help businesses including: Freezing council business rates, allowing businesses to freeze debts or make interest only payments for a year or two, or providing assistance in the form of grants.
"We already have some companies making redundancies," he continued.
"This is just the start - when the winter kicks in, it will get far worse.
"The energy cost for businesses will escalate beyond belief, and we're being hurt by inflation as well.
"When we buy components from abroad, the prices have gone up.
"When we are shipping products out, the prices have gone up.
"A lot of businesses are also under pressure to pay back their debts.
"They are in a very difficult position. It is really devastating."
A UK Government spokesperson said: “No national government can control the global factors pushing up the price of energy and other business costs, but we will continue to support Wales’ businesses in navigating the months ahead.
“We have provided the Welsh Government with its highest-ever funding settlement and cut taxes for businesses, including by increasing the Employment Allowance, which reduces national insurance contributions, and slashing fuel duty.
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"We’ve also introduced a 50 per cent business rates relief for retail, hospitality and leisure businesses and put the brakes on bill increases by freezing the business rates multiplier, worth £4.6 billion over the next five years.”
Earlier this week Wales’ Economy Minister, Vaughan Gething, demanded the UK Government takes immediate action to reduce the growing cost of energy and fuel on businesses across Wales.
He said: "The cost of living crisis engulfing the UK is having a significant impact on families across the country. We’re also facing a cost of business crisis, with businesses across Wales facing increasingly unbearable pressures because of soaring energy and fuel bills.
"Our businesses are the lifeblood of our communities. They provide the jobs people rely on for their livelihoods. As Wales’ Economy Minister, my immediate priority is to do what I can to protect our economy and the people who work within it.
"That’s why I am demanding that the UK Government steps up and takes immediate action now, by using the powers only they have at their disposal to intervene in this crisis. They must bring forward measures to reduce inflation and provide the significant additional help people and businesses need.
"Unless they act now, they risk inflicting significant harm on the Welsh economy. This cannot be allowed to happen."
The Liberal Democrats have also demanded a £10 billion energy bailout fund to save struggling businesses from soaring energy costs.
The party’s Welsh Leader Jane Dodds MS said that the energy crisis is having a COVID like impact on small and medium sized businesses and that equally drastic action needs to be taken by the UK Government.
She said: “Welsh high streets face being turned into ghost towns and unemployment could sore as Conservatives fail to take any action or even seem to care about rocketing energy bills.
“Our local shops, pubs and restaurants could all close their doors for the last time over the coming months unless the government steps up urgently.
“This is a particular concern in Wales where small and medium sized businesses are the backbone of our economy and provide a high percentage of our employment, with this is even more the case in rural areas of Wales.
“We need an energy bailout now to save the high street, rescue small businesses, keep people in their jobs and keep prices down for families."
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