UK Government outlines plans to reduce energy bills for businesses

Through a new Energy Bill Relief Scheme, the UK Government will provide a discount on wholesale gas and electricity prices for all non-domestic customers including all UK businesses, charities, schools and hospitals, as reported on Wednesday, September 21.

The UK Government’s plans to reduce energy bills for businesses will be applied to fixed contracts agreed on or after April 1, 2022, as well as to deemed, variable and flexible tariffs and contracts.

It will apply to energy usage from October 1, 2022 to March 31, 2023, running for an initial six month period for all non-domestic energy users.

The savings will be first seen in October bills, which are typically received in November.

As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.

Prime Minister Liz Truss stated:

“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.”

“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.”

“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.”

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.”

Business Secretary Jacob Rees-Mogg stated:

“We have seen an unprecedented rise in energy prices following Putin’s illegal war in Ukraine, which has affected consumers up and down the country and businesses of all sizes.”

“The help we are already putting in place will save families money off their bills, and the government’s plans for businesses, charities and public sector organisations will give them the equivalent level of support.”

“This, alongside the measures we are taking to boost the amount of domestic energy we produce to improve both energy security and supply, will increase growth, protect jobs and support families with their cost of living this winter.”

The news follows reports that around six million disabled people in the UK are set to receive their one-off £150 Disability Cost of Living payment, as reported on Tuesday, September 20.

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