Business energy bills to be discounted under government plan

The government has today unveiled a new package of support that will slash businesses’ energy bills in half.

The Energy Bill Relief Scheme will offer discounts for all firms for six months from 1 October.

The Business Secretary confirmed that the Government will offer a discount on how much companies are for energy amid concerns that thousands could collapse without further help. Hospitals, schools and other settings such as community halls and churches will also get help.

The move discounts the wholesale cost only at £211 per MWh for electricity and £75 per MWh for gas, and removes green levies. Further clarification on which levies are removed is pending.

Firms do not need to contact suppliers as the discount will automatically be applied to bills and savings will be seen from October’s bills but received in November.

The measures will apply to energy usage from 1 October 2022 to 31 March 2023.

The scheme will apply to fixed contracts agreed on or after 1 April and variable and flexible tariffs and contracts.

How will the scheme work and when will I see a discount?

The scheme will apply to fixed contracts agreed on or after April 1 this year, as well as to deemed, variable and flexible tariffs and contracts.

It will apply to energy usage from October 1 to March 31.

The savings will be first seen in October bills, which are typically received in November.

The discount will be automatically applied to the bills and firms do not need to contact their suppliers.

Following the initial six-month period, “vulnerable” industries – such as hospitality and retail – will continue to receive targeted support.

The government is currently determining exactly which businesses will be deemed eligible for the longer-term help.

It comes in addition to the £2,500 energy price cap on households, also coming into effect on October 1.

Ministers will push through emergency legislation to underpin the new relief scheme once Parliament returns from its break for the party conferences in October.

Ms Truss said: “We know that businesses are very concerned about the level of their energy bills.

“That’s why we are putting in place a scheme for business that will be equivalent to the scheme for households to make sure that businesses are able to get through the winter.

“We’re going to review it after six months. We’ll make sure that the most vulnerable businesses like pubs, like shops, continue to be supported after that.”

Chancellor Kwasi Kwarteng said the government has acted to “stop businesses collapsing, protect jobs and limit inflation”.

For further information, click this link.

Contact us for more information.

More News

A guide to reducing business energy costs

Mitigating the cost of energy bills is a priority for many businesses amid the current economic strain. Grants, subsidies or...

Individual or Systemic Change, What’s Best for the Climate?

Can you make a difference to climate change with your individual actions? Or are you much too small to make...

Straight to Business: What Britain’s New PM Means for Business Energy Costs

Liz Truss, the new leader of the Conservative Party and British Prime Minister, comes to power amidst the worst energy...