There is good news for businesses facing ruinous energy bills this winter, with details of a new government support package.
Businesses in the UK will see their energy bills cut in half as part of the Energy Bill Relief Scheme.
The scheme operates for all businesses and organisations for six months from 1st October.
Hospitals, schools, charities and similar organisations will receive the same support level.
The support scheme for businesses follows the recent announcement of a £150 billion package of support for households to help them meet the cost of soaring energy bills.
The government has not placed a figure on the scheme as the cost to the taxpayer will depend on movements in the wholesale energy market between October and April.
Details of the scheme were revealed by the Department for Business, Energy and Industry, and mean wholesale prices will be fixed for all non-domestic energy customers for six months at £211 per MWh for electricity and £75 per MWh for gas.
The scheme will then be reviewed after three months, potentially extended to support ‘vulnerable businesses’ for a further period.
The discounts will be automatically applied to bills, with savings seen from October’s statements onwards, and then received in November.
Discounts will also apply to businesses with fixed contracts agreed on or after 1st April 2022, as well as for variable and flexible contracts.
Commenting on the scheme, Prime Minister Liz Truss said the government understood the “huge pressure businesses, charities and public sector organisations are facing with their energy bills”, saying:
“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.”
All non-domestic energy customers in England, Wales and Scotland will benefit from the Energy Bill Relief Scheme, with a parallel scheme operating in Northern Ireland.
Businesses are not covered by the domestic energy price cap, resulting in more significant fluctuation in energy bills for businesses and other organisations.