Michael welcomed the recent announcement about government support for business energy bills.
Business Secretary Jacob Rees-Mogg has unveiled the new government Energy Bill Relief Scheme, which will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals) whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the Energy Price Guarantee put in place for households.
The Government has set a Supported Wholesale Price - expected to be £211 per MWh for electricity and £75 per MWh for gas – which is a discounted price per unit. This scheme will effectively put a cap on the unit price of electricity and gas charged to non-domestic customers.
The level of price reduction for each business will vary depending on their contract type and circumstances. As with the Energy Price Guarantee for households, support will automatically be applied to bills.
The discount 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 6 month period for all non-domestic energy users.
Michael said
I know businesses have been very concerned about the rise in energy costs. I am pleased that the government have listened to these concerns, and all non-domestic customers will benefit from this help.
Find out more information here: Support for businesses
