The discount on wholesale gas and electricity will be provided by the government to businesses, through the new Energy Bill Relief Scheme. This will be equivalent to the Energy Price Guarantee for households, announced earlier in the month. It will be applicable to businesses with fixed contacts, and will apply to energy usage from 1 October 2022 to 31 March 2023.
The government-set Supported Wholesale Price is expected to be £211 per MWh for electricity and £75 per MWh for gas. This would be less than half the wholesale prices anticipated this winter. A parallel scheme will be set up for Northern Ireland.
Commenting on the new scheme, Business Secretary Jacob Rees-Mogg said: “We have seen an unprecedented rise in energy prices following Putin’s illegal war in Ukraine, which has affected consumers up and down the country and businesses of all sizes. The help we are already putting in place will save families money off their bills, and the government’s plans for businesses, charities and public sector organisations will give them the equivalent level of support. This, alongside the measures we are taking to boost the amount of domestic energy we produce to improve both energy security and supply, will increase growth, protect jobs and support families with their cost of living this winter.”
Despite this, SMMT Chief Executive Mike Hawes believes more support will be required longer-term: “The new Business Secretary has given thousands of automotive companies vital breathing space, helping keep their operations viable this winter. This is a short-term fix, however, and to avoid a cliff-edge in six months’ time, it must be backed by a full package of measures that will sustain the sector.”
For more information, visit: the government website here.