As reported by BOSS Federation, the UK government has announced details of a new energy bill relief scheme that will effectively cut energy bills for businesses by around 50% of their expected levels this winter
The energy bill relief scheme will fix gas and electricity prices for all firms for six months from 1 October and run for an initial six-month period. The fixed rates are 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.
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. The supported wholesale prices for gas and electricity under the scheme will be confirmed on September 30.
The support 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.
Although the support from government is welcomed and will reduce immediate uncertainty and bolster confidence around current planned investments energy prices are likely to stay high for some time and the announced support for business initially covers a six-month period.
This months ‘Big Ask’ will be covering the energy crisis and we would love to have your contribution. Please contact kate@intelligentmedia.co.uk with your interest.
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