UK Retailers Demand Energy Levy Cuts to Shield Shoppers from Price Hikes

The British Retail Consortium (BRC), representing major chains like Tesco, Sainsbury’s, and Marks & Spencer, reports that electricity bills for the sector will climb to £3.16 billion this year, up from £2.72 billion. According to the BRC, government-imposed policy levies now account for two-thirds of these costs, rather than global energy market fluctuations. The most significant driver is the Transmission Network Use of System charge, which is set to rise by 72 percent, tacking an additional £200 million onto the industry's total bill.

Additional levies, including the renewables obligation and the climate change levy, remain on an upward trajectory despite the sector’s high energy intensity. BRC chief executive Helen Dickinson argues that reducing these burdens is essential to provide retailers the flexibility to stabilize shelf prices and protect jobs. This lobbying effort arrives ahead of next month’s Budget, as major employers like John Lewis and the Co-op caution against further fiscal pressure through business rates and national insurance hikes.