Government announces business energy price cap details
The government has revealed further details to support businesses facing rising energy bills this winter.
The Department for Business, Energy & Industrial Strategy said this morning that through its new Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers.
The “supported wholesale price” is expected to be £211 per MWh for electricity and £75 per MWh for gas. The government said this is “less than half the wholesale prices anticipated this winter”.
“It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts,” the announcement said. “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 are expected to be first seen in October bills, which are typically received in November.
Businesses do not need to take action or apply to the scheme to access the support – it will be automatically applied to bills, the government said.
The deal includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
Chancellor Kwasi Kwarteng said: “We have stepped in to stop businesses collapsing, protect jobs, and limit inflation. And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.”
The Association of Convenience Stores chief executive James Lowman welcomed the news. He said the government’s support package "will provide a lifeline for the UK’s local shops, enabling them to keep trading and serving their communities".
“We will continue to work closely with the Department for Business, Energy and Industrial Strategy on longer term solutions to the energy crisis facing convenience stores and other businesses, including ways to incentivise investment in energy efficient technology.”
To read the full statement, click here.