New government scheme will see energy prices for non-domestic energy customers such as businesses, charities and public sector organisations cut – protecting them from rising energy costs
Government work with suppliers will reduce wholesale energy costs – and the significant rises in bills that businesses have seen
This support is in addition to the Energy Price Guarantee for households, with further measures today to strengthen support for families across the United Kingdom, including those in rentals or park homes
The government will provide a discount on wholesale gas and electricity prices for all non-domestic customers, including all UK businesses, the voluntary sector and the public sector. This support will be equivalent to the Energy Price Guarantee put in place for households.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts.
It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial 6 month period for all non-domestic energy users.
The savings will be first seen in October bills, which are typically received in November.
Customers do not need to take action or apply to the scheme to access the support, as this support will be automatically applied as a discount to bills.
The government has set a Supported Wholesale Price, expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity.
The level of price reduction for each business will vary depending on their contract type and circumstances. If you are not connected to either the gas or electricity grid, equivalent support will also be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Further detail on this will be announced shortly.
The government will publish a review into the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs.
Julian said, “It is very good to see this much needed intervention by Jacob Rees-Mogg, many across North Yorkshire will welcome this announcement which will cut energy costs for businesses, charities and public sector organisations. I will also continue to stay in close touch with businesses across the constituency on these issues.”
