The MHA Energy group provides access to a wide range of services, across the country and internationally through our global network, Baker Tilly International.
The energy industries in the UK play a central role in the economy by producing, transforming and supplying energy in its various forms to all sectors. They are also major contributors to the UK’s Balance of Payments through the exports of crude oil and oil products. According to the ONS, in 2013 the energy industries’ contribution to the economy represented 3.3 per cent of GDP, 18 per cent of total investment, 56 per cent of industrial investment, 169,000 people directly employed (6.2 per cent of industrial employment), and many others indirectly employed (e.g. an estimated 200,000 in support of UK Continental Shelf activities).
Energy, natural resources and sustainability are related themes representing both an opportunity as well as a threat for all businesses, large and small. And with a changing regulatory landscape this is an area to be revisited, at least as often as you revisit your budgets, alongside your professional advisor.
Our Clients Tend To Look At Energy From Two Angles:
- Firstly, many of our clients are part of the chain supplying directly in to the energy industries across the renewable energy, conventional energy, natural resource and utility sectors. It’s a hugely important sector for the UK, and one that is enjoying rapid growth. For example, according to Ofgem up to £200bn of investment will be required in the next decade to meet the UK’s ambitious carbon reduction targets.
- Secondly, for many businesses energy bills are now their second or third biggest cost, after labour and business rates. There are serious structural flaws in the way the market works meaning, in many respects, non-domestic energy users are worse off than households. For instance, research by NatWest shows that 96% of small businesses are still on their supplier’s standard tariff. Increasing numbers, therefore, are looking to become self-sufficient by producing their own energy, guarding against inevitable cost increases and whilst also contributing to a lower carbon economy.
One thing in common is that all energy projects are long-term and require finance, which can be hard to find. That’s where we come in.
Our experts can help you identify and tap into new sources of finance, throughout the UK and overseas. As well as introducing you to private investors, we can help you navigate the government incentives and find grants and contracts that can help you grow. Success here will often depend on the ability to build and present a robust and credible business plan. This is where MHA has the collective capability to assist. And when successful, we can guide you through the process of obtaining, structuring and investing the funds, in the most tax effective way, too.
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