Previously, we mentioned in the article that the Energy Bill will freeze the cap on household energy bills starting October 1 this year for two years.
The same looming businesses will also receive financial support for six months from October in a scheme that will cost £60bn.
The government will set energy prices that apply to businesses, which are expected to be £211 per MWh for electricity and £75 per MWh for gas (the discounted price depends on the type of energy contract you have).
Energy Bill Plan Details
The government will provide discounts on wholesale gas and electricity prices for all non-domestic customers, including all UK businesses, the voluntary sector such as charities, and the public sector such as schools and hospitals.
The support scheme is understood to save UK businesses around half their energy bills this winter. Including the removal of green levies paid by non-domestic customers supported under the scheme.
- The government will guarantee businesses to pay a fixed price, estimated to be around 21p per kWh for electricity and 7.5p per kWh for gas (the discounted price depends on the type of energy contract you have).
Businesses automatically participate in the Energy Bill Support Program without taking action or applying for a waiver.
The savings will appear first on October bills, which are usually received in November.
However, this does not mean that suppliers will lose money and energy suppliers will receive government subsidies.
Who is the Enterprise Energy Support Program for?
The Energy Bill Relief Scheme will apply to all UK businesses and public sector organisations.
As the new scheme will run from October 1 until March 31, 2023, the same applies to companies with fixed contracts signed on or after April 1.
This means that organisations and companies that pay energy suppliers in excess of the cap will also benefit from the energy plan.
If your business is in Northern Ireland, the government will soon set up a parallel scheme to help businesses through the winter.
Statement of Special Circumstances
Companies that do not connect to energy suppliers such as natural gas or the grid and instead use heating oil or alternative fuels will need to wait for further details.
The government will review the plan within three months of its release, and adjust the energy subsidy plan for the following year according to actual circumstances.