Energy bills: Government announces support for companies in crisis

The government will detail a comprehensive support package for companies trying to ease the financial impact of rising energy bills.

The package is said to be worth tens of billions of pounds and comes amid increased calls from businesses for certainty about electricity and gas costs so they can plan.

Ministers have said businesses, schools, hospitals, charities and other non-domestic consumers will be covered by the scheme after warning of the devastating impact on the economy if they fail to act.

The Government has already announced that bills for an average household in England, Scotland and Wales will be capped at £2,500 from October 1 – but although equivalent support has been promised to businesses, they have been awaiting details as officials ordered a tailor-made have created plan.

The Argus: PAPA

Wholesale gas and electricity costs will be reduced for businesses under a program running for six months from October.

The government will cap the wholesale price paid by non-household customers, which include schools and charities.

The “supported wholesale price” is expected to be £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas.

This is about half the expected wholesale price on the open market and is in line with the household electricity bill cap set this October and set to last for two years.

Chancellor Kwasi Kwarteng said: “We have stepped in to stop corporate collapse, protect jobs and limit inflation.

“And with our plans to strengthen domestic energy supply, we will bring security to the sector, growth to the economy and a better choice for consumers.”

Prime Minister Liz Truss said shops and pubs will benefit from support for their energy bills beyond the initial six-month scope of the scheme.

She said: “We know businesses are very concerned about the size of their energy bills.

“That is why we are introducing a business regime to match the household regime to ensure businesses get through the winter.

“We will review it after six months. We will ensure that the most vulnerable businesses, such as pubs and shops, continue to receive support after this.”

She said the original scheme “applies from the first of October to ensure businesses have that certainty through the winter”.

The savings are first reflected in October invoices, which are typically received in November. Energy bills: Government announces support for companies in crisis

Fry Electronics Team

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