The Government has outlined a new Energy Bill Relief Scheme to support households, businesses and public sector organisations tackling soaring energy bills.
The figure is set to be capped at less than half the wholesale costs on previously predicted bills, offering a reduction on gas and electricity prices for all non-domestic customers.
This support will be equivalent to the Energy Price Guarantee introduced for domestic households.
What savings will be made?
The Supported Wholesale Price is likely to be £211 per MWh for electricity and £75 per MWh for gas, lower than half the wholesale prices predicted this winter.
Relief will be applied to fixed contracts, as well as changing and flexible tariffs and contracts, agreed on or later than 1 April 2022.
The scheme, which is based on usage, will operate for a preliminary six-month period for all non-domestic energy customers from 1 October 2022 to 31 March 2023.
Consumers will see the first amount of savings in October bills that are typically issued by suppliers in November.
What do customers need to do?
The relief will be automatically applied to bills, meaning that customers do not need to take any action themselves.
The amount each business will save depends on their contract type and circumstances. You can find out the different levels of support here.
Non-domestic customers, who use heating oil or alternative fuels, will obtain equivalent support. Further information on this will be revealed in due course.
The scheme will be evaluated in three months, with the Government set to publish a report to guide decisions on future support after March 2023, focussing on detecting non-domestic customers who are most at need.
For help and advice on related matters, contact our team today.