New support for businesses and public sector organisations facing rising energy bills in the UK has been unveiled by business secretary, Jacob Rees-Mogg today (Wednesday, September 21).
Through a new government Energy Bill Relief Scheme, a p/kWh discount on wholesale gas and electricity prices will be provided for all non-domestic customers, including all UK businesses, the voluntary and the public sector.
The discount will apply for an initial six-month period on energy usage from October 1, 2022 to March 31, 2023. The savings will be first seen in October bills, which are typically received in November.
The discount will automatically be applied to bills of fixed contracts agreed on or after April 1, 2022, as well as to deemed, variable and flexible tariffs and contracts.
This support will be equivalent to the Energy Price Guarantee put in place for households, and customers do not need to take action or apply to the scheme to access the support.
The aim of the support offered by the government is to facilitate growth, prevent unnecessary insolvencies and protect jobs.
Rees-Mogg said energy prices have seen an “unprecedented rise” following the war in Ukraine, which has “affected consumers up and down the country and businesses of all sizes”.
“I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.
“At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all,” according to Prime Minister, Liz Truss.
Reactions
Minette Batters, the president of the National Farmer’s Union (NFU) said: “We welcome the detail announced today in the energy support package which will provide a much-needed cushion for farmers, growers and food businesses who are vulnerable to high wholesale energy prices.”
Given the package does not cover limits on standing charges, it’s essential the government continues to assess the full impact that energy bills will have on business confidence and production.”
Batters also called for clarity on what supports will be in place after the six month period is up, adding that farmers “simply can’t produce the food the nation needs without affordable energy”.
The president of the NFU in Scotland, Martin Kennedy said: “NFU Scotland has welcomed the publication of details on how hard-pressed food and farming businesses are to benefit from government measures to cap crippling electricity costs, and we will share these with our members to gauge the impact.
“This important intervention must be seen as the first step taken by the UK government, on behalf of all hard-pressed consumers, to provide essential support to underpin domestic food production, tackle inflation and the ongoing food security crisis,” he said.
“For the cap to be judged as effective, it must give all farming and food businesses confidence to go on, or food security continues to be undermined and prices at the shop shelf will continue to climb.”
CEO of UKHospitality, Kate Nicholls also welcomed the government’s announcement and said business owners “particularly welcome its inclusiveness – from the smallest companies to the largest – all of which combine to provide a huge number of jobs, which are now much more secure”.
