Energy Bill Relief Scheme: What this means for your business
According to government announcements, wholesale energy prices will be reduced by up to 50% over the winter.
Chancellor Kwasi Kwarteng stated:
"We have stepped in to stop businesses collapsing, protect jobs, and limit inflation. And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers."
In England, Scotland, and Wales, the Energy Bill Relief Scheme will be available to all non-domestic energy consumers. In Northern Ireland, a counterpart programme based on the same standards and providing equal assistance will be developed.
It is acknowledged that creating a support programme for businesses has been more difficult than for domestic consumers due to the greater range of contracts across various industries.
The action effectively sets a maximum price on the unit pricing cost of electricity and gas paid to enterprises, similar to the energy price guarantee for families, which also starts on October 1.
According to the plan, wholesale pricing for all non-domestic energy users would be set for a period of six months at £211 per MWh for electricity and £75 per MWh for gas.
The government stated that businesses with other contracts, including those with variable rates, will be subject to a maximum discount band that will probably be in the range of £405/MWh for electricity and £115/MWh for gas.
How can PSP help?
Regardless of the scheme, small businesses must still find suitable contracts and that's where we can help. We understand that many businesses are currently on flexible/variable contracts however this type of contract may not be ideal right now, but with our expert guidance and support, we can help you find the right energy contracts.
Start saving now by getting in touch with one our of specialists at 03330 156 289, alternatively you can email us at firstname.lastname@example.org.