Business Secretary Jacob Rees-Mogg announced today an energy bill relief scheme for businesses for the next six months from 1st October 2022. This relief scheme will see energy bills for UK businesses cut by around half their predicted level this winter.
The government support will set the wholesale price of electricity at £211 per Megawatt and gas at £75 per Megawatt. These rates do not include extra fees like standing charges.
This scheme will apply to fixed contracts agreed on or after 1st April 2022, as well as variable and flexible tariffs.
As with the Energy Price Guarantee for households, businesses do not need to contact their provider to access the scheme, as it will automatically be applied to their bills.
This support is targeted at the non-domestic market, which includes schools, hospitals, charities and businesses.
The scheme is expected to be reviewed in the new year with an option to extend support for vulnerable businesses. However, it is not known at this time, which business will be classed as vulnerable.
The government have not said how much the package will cost the taxpayer, but estimates are around £25bn.