UK businesses given temporary emergency energy price cap

Business owners can breathe a slight sigh of relief as the Government has announced plans to introduce a temporary cap on energy bills.

From 1 October, the new Energy Relief Scheme will see wholesale energy prices for all firms capped for six months.

This additional intervention follows the Governments initial announcement regarding a £150bn plan to help households with bills for two years.

Support will also stretch past businesses, covering hospitals, schools and other settings such as community halls and churches.

Prime Minister Liz Truss has stated that they understand the “huge pressure businesses, charities and public sector organisations are facing with their energy bills.”

Under the scheme, wholesale prices are expected to be fixed for all non-domestic energy customers at £75 per MWh for gas and £211 per MWh for electricity for six months.

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

Those benefiting from the scheme don’t need to contact their suppliers as a discount will automatically be applied to them.

One piece of the puzzle

This support will undoubtedly play a role in helping businesses stay afloat and even thrive over the coming months.

However, the support with energy bills is only one piece of the puzzle regarding the cost of living crisis.

Rising food and fuel bills alongside people’s hesitancy to shop during what is typically the busiest period of the year for many businesses still need addressing.

With a mini Budget coming this Friday, we remain optimistic that further assistance is on the way to support the UK economy; you can see our predictions for what will be included in the mini Budget in our latest article here.