With businesses across the UK concerned about the rising cost of energy, many will be relieved to learn the latest steps that the Government is taking to help them manage gas and electricity bills.
Following an announcement in Parliament earlier this month, the Government has now outlined how the Energy Bill Relief Scheme will support businesses and public sector organisations facing soaring energy bills.
Under this new measure, gas and electricity unit costs will be capped at less than half the wholesale costs on previously predicted bills, offering a reduction on energy cost for all non-domestic customers.
This is equivalent to the Energy Price Guarantee introduced for domestic households.
How much will you save?
The Energy Bill Relief Scheme while ensure that customer benefit from a Supported Wholesale Price, which is likely to be £211 per MWh for electricity and £75 per MWh for gas.
Relief will be applied to fixed contracts, as well as changing and flexible tariffs and contracts, agreed on or later than 1 April 2022.
The scheme, which is based on usage, will operate for a preliminary six-month period for all non-domestic energy customers from 1 October 2022 to 31 March 2023.
Consumers will see these savings in their October bills, which are usually issued by suppliers in November.
Do you need to do anything?
Customers do not need to take any action themselves, as the relief will be automatically applied to bills during this period.
The amount each business will save depends on their contract type and circumstances. You can find out the different levels of support here.
Non-domestic customers, who use heating oil or alternative fuels, will obtain equivalent support. Further information on this will be revealed in due course.
The Government will publish a report in three months, which will evaluation the scheme and guide decision makers on future support after March 2023.
For help and advice on related matters, contact our team today.
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