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Government outlines plans to help cut energy bills for businesses

Government outlines plans to help cut energy bills for businesses

The government has announced an emergency package of government support including a cap significantly reducing the price paid for energy from 1 October to help businesses, public sector organisations and households facing rising energy bills.

The government’s new Energy Bill Relief Scheme, aims to provide discounts on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals) whose current gas and electricity prices have been significantly inflated in light of global energy prices.

This support will be equivalent to the Energy Price Guarantee put in place for households and will see:

  • energy prices for non-domestic energy customers such as businesses, charities and public sector organisations cut – protecting them from rising energy costs
  • government work with suppliers to reduce wholesale energy costs – and the significant rises in bills that businesses have seen

This 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 6 month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.

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.

If you would like to discuss the impact this has on your business, please contact us.

Link: Plans to cut energy bills

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