The Department for Business, Energy and Industrial Strategy (BEIS) has today announced details for a new ‘Energy Bill Relief Scheme’ – designed to provide support for businesses and other non-domestic customers.
Equivalent to the ‘Energy Price Guarantee’ support package for households, the scheme will be available to all businesses, voluntary sector, and public sector organisations, and will come into force initially from 1 October 2022 to 31 March 2023.
Under the scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic customers whose energy bills have been ‘significantly’ inflated due to global price rises. To administer support, the Government has set a ‘Supported Wholesale Price’, which is expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter, and includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
The discount will apply to fixed contracts agreed on or after 1 April 2022, as well as deemed, variable and flexible tariffs and contracts. As with the ‘Energy Price Guarantee’ for households, the support will be automatically applied to bills.
The Government have confirmed they will review the operation of the scheme in three months, focusing particularly on identifying the most vulnerable non-domestic customers and how they can continue to be supported.
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With the worsening economic situation and Bank of England warnings that the UK will fall into a recession later this year, now is a great time to consider what you should do to prepare your business for the coming months. To discuss how you can recession-proof your business, get in touch with your usual PM+M adviser, or email firstname.lastname@example.org, and we will direct your query to the correct person.