Government announces energy support for businesses
The UK Government has announced details of a new Energy Bill Relief Scheme that will effectively cut energy bills for businesses by around 50% of their expected levels this winter.
The Energy Bill Relief Scheme will fix gas and electricity prices for all firms for six months from 1 October and run for an initial six-month period.
The fixed rates are expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter - which is a discounted price per unit of gas and electricity.
As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.
New support for households, businesses and public sector organisations facing rising energy bills in Great Britain and Northern Ireland has been unveiled by Business Secretary Jacob Rees-Mogg today (Wednesday 21 September).
The supported wholesale prices for gas and electricity under the scheme will be confirmed on 30 September.
The support will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
A parallel scheme, based on the same criteria and offering comparable support, but recognising the different market fundamentals, will be established in Northern Ireland.
The Government will conduct a review of the Government Energy Bill Relief Scheme, to be published in 3 months' time.
How are energy prices affecting your business?
Although the support from government is welcomed and will reduce immediate uncertainty and bolster confidence around current planned investments energy prices are likely to stay high for some time and the announced support for business initially covers a six-month period.
BOSS have added an additional section to their latest State of Office Supplies Survey on energy and are calling for companies in the industry to complete this so they can best represent the industry to Government, in particularly through regular discussions with the Department for Business, Energy & Industrial Strategy (BEIS). This feedback will be essential in providing the government with information throughout their stated 3-month review.
Complete the Survey here.