Power firms 'wrongly judging' farmers as high risk, NFU says

The NFU says that power companies must recognise the needs of farmer and grower businesses across the country
The NFU says that power companies must recognise the needs of farmer and grower businesses across the country

Energy businesses are being urged by the NFU to address agricultural energy costs and contract prices as the markets continue to experience volatility.

The union said there was 'good evidence' to suggest power companies may be 'wrongly judging' farming businesses as high risk.

Farmer and growers across the UK have been faced with large increases in energy prices.

Businesses have also reported difficulty in securing new contract prices when their contract renewal is up.

In response, the NFU has written to the top six energy companies to address these issues.

"We think there is good evidence to suggest power companies may be wrongly judging farmer businesses as high risk and therefore charging more – on top of high wholesale energy costs," the NFU said.

"We also see significant uplift in standing charges that are not properly explained, when combined with increased rates, has meant credit limits have not been able to keep pace making it even harder for businesses to secure energy contracts."

The union added: "We are backing our members and are writing to the top six energy companies to address these issues in the short term and highlight impact on business and food production.

"We’re also seeking support for future work that will help farmers access the renewables market and contribute to the nation’s future food and energy security."

It comes as NFU Scotland recently urged farmers to provide details on soaring electricity costs and the impact that is having on their businesses.

Evidence provided by its survey will assist the union’s lobbying on the energy crisis and the results will be collated ahead of a planned visit to Westminster this month.

Organiser of the survey, NFU Scotland’s Rhianna Montgomery said: “We are aware that members are experiencing significant increases in their electricity bills and wish to collate a series of case studies in which we can use as supportive evidence for our key asks to government.

“Even if members do not wish to be used as a case study, we urge them to complete the survey as any hard data we can collect before the survey closes on 7 September will be extremely beneficial.”