Government outlines plans to help cut energy bills for businesses

The government has outlined new support for households, businesses and public sector companies facing rising energy bills.

Through a new energy bill relief scheme, the government will give a discount on wholesale gas and electricity prices for all non-domestic customers whose current gas and electricity prices have inflated considerably over the global energy price crisis. This support for businesses will be the equivalent to the energy price guarantee in place for households.

Applying to all fixed contracts agreed after the 1st April 2022, as well as to deemed variable and flexible tariffs and contracts, it will apply to energy use from 1st October 22 to the 31st March 23, running for an initial six months for all non domestic energy users.

Users will see the saving in their October bills.

Just like the guarantee for households, customers don’t need to apply to receive this benefit as it will be automatically applied to bills.

To deliver support, the government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices expected this winter, which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.

Find out more about this here.