Energy Bill Relief Scheme for Businesses
A new Government scheme has been announced which will see energy (gas and electric) prices cut for businesses, charities and public sector organisations – protecting them from rising energy costs.
New support has been unveiled by Business Secretary Jacob Rees-Mogg today designed to support growth, helping prevent unnecessary insolvencies and protecting jobs.
Through a new Government Energy Bill Relief Scheme, the Government will provide a discount on gas and electricity prices for all non-domestic customers whose current prices have been significantly increased as a result of global energy costs. This support will be equivalent to the Energy Price Guarantee put in place for households.
It 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. The savings will be first seen in October bills, which are typically received in November.
As with the Energy Price Guarantee for households, business 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 directly to bills.
The Government has set a Supported Wholesale Price – 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. This is equivalent to the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
The level of price reduction for each business will vary depending on their contract type and circumstances:
A review will take place 3 months into the period to inform decisions on support after March 2023. The review will focus on identifying the most vulnerable non-domestic customers and how the Government will continue assisting them with energy costs. Further details can be found here (https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses)
