21/09/2022
Government outlines plans to help cut energy bills for businesses
Business Secretary Jacob Rees-Mogg announced today (Wednesday 21 September) a new Government scheme that will see energy prices for non-domestic energy customers such as businesses, charities and public sector organisations cut – protecting them from rising energy costs.
Through the Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic customers, whose current gas and electricity prices have been significantly inflated in light of global energy prices. Hospitals, schools, and other settings such as community halls and churches will also receive the support.
The scheme 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.
This support will be equivalent to the Energy Price Guarantee put in place for households, and similarly, 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.
Under the scheme, revealed by the Department for Business, Energy and Industrial Strategy, 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.
Prime Minister Liz Truss said:
“I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.
As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.
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.”
