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4 Oct

Government plans to help cut energy bills for businesses


Plans unveiled today (21/09/2021) by Business Secretary Jacob Rees-Mogg have been announced to support growth, prevent unnecessary insolvencies and protect jobs in response to the rising energy bills faced by businesses, households and public sector organisations in Great Britain and Northern Ireland.

What are the government doing to support UK businesses

To support UK businesses, the government has set a Supported Wholesale Price which will help to cut bills this winter. This price is expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter.

Key points from the latest government announcement:

  • The introduction of a new government scheme will see energy prices as businesses, charities and public sector organisations cut – protecting them and their jobs from rising costs.
  • Through a new government Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers
  • This support is in addition to the Energy Price Guarantee for households, with further measures today to strengthen support for families across the United Kingdom, including those in rentals or park homes

source: https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses

How will this energy support be applied?

In this latest announcement, the UK government has stated they will apply this support to fixed contracts agreed on or after 1 April 2022, as to deemed, variable and flexible tariffs and contracts. This will also apply to energy usage from 1 October 2022 to 31 March 2023, initially running for a six-month period. Businesses can expect to see these savings applied to their October bills which are, in most cases, received in November.

As with the Energy Price Guarantee for households, business energy customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.

To ensure the protection of businesses during winter months, the introduction of this scheme will help businesses manage what was expected to be an incredibly challenging time. Liz Truss, the newly appointed Prime Minister, had this to say:

“ I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind. At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”

Chancellor Kwasi Kwarteng added: “We have stepped in to stop businesses collapsing, protect jobs, and limit inflation. And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.” 

For any of our business energy customers concerned about the current energy crisis, please do not hesitate to get in touch with our customer service team for advice and guidance regarding your bills and payments.

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We take pride in our commitment to providing the most competitive rates for business electricity and gas. If you are seeking guidance on how to effectively reduce your business electricity and gas costs, or require assistance with a business energy switch, please call our dedicated Customer Services team at 0800 781 7626. We assure you that calls will be answered promptly within five rings or less!

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