[London, 21 September 2022, 12.00 pm] — The government has today published its plans to help cut energy bills for hard pressed businesses in the UK.
The scheme will cap the wholesale element of business users’ energy bills at a ‘Supported Wholesale Price’, expected to be £211 per MWh for electricity and £75 per MWh for gas.
The scheme will apply to all non-domestic users on fixed price contracts agreed on or after 01 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will initially run for six months, applying to energy use from 01 October 2022 to 31 March 2023.
Slightly different arrangements will apply for customers on default, deemed or variable tariffs. They will receive a per-unit discount on energy costs, expected to be up to around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments. The Government is also working with suppliers to ensure all customers in England, Scotland and Wales have the option of being able to switch to a fixed price contract whilst the scheme is in place.
Equivalent support will also be provided for non-domestic customers that are not connected to the gas or electricity grid, and more detail will be announced on this shortly.
Businesses do not need to take action or apply to the scheme to receive this support, which will be applied automatically via their supplier in the form of a p/kWh discount.
A review of the scheme will take place in three months to inform decision making about any future support that might continue after March 2023.
AlfaEnergy Group’s Corporate Affairs Officer, Jeremy Nicholson, commented:
“This is a hugely important announcement for business energy users, helping them to stay in business whilst the UK rides out the surge in international energy prices. Importantly it is comprehensive, applying to all business users, and will provide much-needed relief and certainty as we enter the difficult winter period ahead.”
Full details of the government’s announcement are available here:
Government outlines plans to help cut energy bills for businesses -GOV.UK (www.gov.uk)
The article can be found here: https://www.manufacturingmanagement.co.uk/content/news/industry-mixed-over-government-s-energy-support
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Jeremy Nicholson
Corporate Affairs Officer, Alfa Energy Group
Jeremy Nicholson is Alfa Energy Group’s Corporate Affairs Officer. Prior to his current role, he was Director of the Energy Intensive Users’ Group, which campaigns for secure, competitive energy supplies for UK industry. He trained as a civil engineer, specialising in infrastructure and regulatory projects for utilities and their regulators before joining the EIUG as an economic adviser in 2000. He is a former board member of IFIEC Europe (the International Federation of Industrial Energy Consumers) and member of Ofgem’s Sustainable Development Advisory Group, and a Fellow of the Energy Institute.
If you would like more information about this topic, or to discuss any energy related matters with Jeremy Nicholson, please contact Lisa Turner at +44 (0) 20 3994 5806, or email lisa.turner@alfaenergy.co.uk.
