The Government has announced a new scheme that will see energy prices for non-domestic energy customers such as businesses, charities and public sector organisations cut to help protect them from rising energy costs.
Through a new Government Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic customers. This will include all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals and will help protect against the significantly inflated global energy prices. This support is equivalent to the energy Price Guarantee that was recently put in place for households.
Government information states that:
“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.
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.
To administer support, 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. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.”
You can see further information on the Gov.uk here: Government outlines plans to help cut energy bills for businesses - GOV.UK (www.gov.uk)
Guidance on the scheme can be seen here: Energy Bill Relief Scheme: help for businesses and other non-domestic customers - GOV.UK (www.gov.uk)