Business energy costs to be cut by around half of anticipated winter levels
As part of a government support package, the Energy Bill Relief Scheme will offer discounts for all businesses for six months from 1 October 2022 in a bid to avoid mass bankruptcy and job losses across all industries this winter
Under the scheme, revealed by the Department for Business, Energy and Industry, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months.
The discount will automatically be applied to bills and savings will be seen from October’s bills but received in November. The scheme will apply to fixed contracts agreed on or after 1 April and variable and flexible tariffs and contracts.
James Bielby, Chief Executive of the Federation of Wholesale Distributors, said: “FWD welcomes the support announced today. However, some customers may face cashflow problems as the support won’t be received until November. Additionally we are in the dark about what happens at the six-month point. Government are yet to define a ‘vulnerable business’ so there is uncertainty as to which sectors or what criteria will qualify for ongoing support. FWD continue to work closely with government to ensure the challenges our members and their customers face are being addressed.”
Prime Minister Liz Truss said the government understood the “huge pressure businesses, charities and public sector organisations are facing with their energy bills”.
“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind,” she said.
“At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”
The Energy Bill Relief Scheme will apply to all non-domestic energy customers in England, Scotland and Wales. A parallel scheme, based on the same criteria and offering comparable support, will be established in Northern Ireland.”energy Energy Bill Relief Scheme FWD Government James Bielby