Government caps business energy bills

Wholesale energy prices for businesses will be capped at 'less than half' of the anticipated winter levels under the government's support package.

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

Hospitals, schools and other settings such as community halls and churches will also get help.

Under the scheme, revealed by the Department for Business, Energy and Industry (BEIS), wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas.

Firms do not need to contact suppliers as the discount will automatically be applied to bills.

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

Kate Nicholls, CEO of UKHospitality, said:

'This intervention is unprecedented and it is extremely welcome that government has listened to hospitality businesses facing an uncertain winter. We particularly welcome its inclusiveness – from the smallest companies to the largest - all of which combine to provide a huge number of jobs, which are now much more secure.

'The government has recognised the vulnerability of hospitality as a sector, and we will continue to work with the government, to ensure that there is no cliff edge when these measures fall away.'

The announcement followed the launch of the Energy Price Guarantee for households. This will also cap the unit price of energy so that the typical UK household will now pay up to an average £2,500 a year on their energy bill for the next two years.

Speaking at the Mini Budget, Chancellor Kwarteng confirmed that the two schemes would cost a combined £60 billion for six months.

Home | Newsletters | May 2023Tax Rates | Tax Rates 2024-25Contact us | Site map | Accessibility | Help | Disclaimer | Privacy |

Gibson Booth is the brand under which a number of independent firms provide professional services. Each firm is a separate and distinct legal entity, liable for its own acts and omissions and not for those of any other firm. No firm has an authority to enter into obligations or incur liabilities on behalf of another.

© 2024 Gibson Booth. All rights reserved.


Gibson Booth, New Court, Abbey Road North, Huddersfield, West Yorkshire HD8 8BJ