Government Energy Bill Relief Scheme announced by the Government
The Energy Bill Relief Scheme has been announced today by Business Secretary Jacob Rees-Mogg, which will cap Business energy bills.
The newly announced Government Energy Bill Relief Scheme is to provide a discount on the wholesale gas and electricity prices for non-domestic customers. This is extended to all UK businesses, the public sector including hospitals and schools and the voluntary sector.
The Government states that this support will be at the equivalent level to the Energy Price Guarantee available for households.
The Government Energy Bill Relief Scheme will apply to fixed contracts in place on or after 01.04.2022 alongside variable, deemed and flexible tariffs and contracts. The scheme is scheduled to apply to energy usage from 01.10.2022 to 31.03.2023.
Business customers are not required to act or apply to access the support. This will automatically be applied to bills as a p/kWh discount.
To provide this support, a Supported Wholesale Price has been set by the Government. Which it states is expected to be £75 per MWh for gas and £211 per MWh for electricity (less than half the wholesale prices anticipated for the winter). This also includes the withdrawal of green levies that are paid by non-domestic customers receiving support under the scheme.
A parallel support scheme will be established in Northern Ireland, based offering comparable support, but recognising the different market fundamentals.
In three months, the Government has stated it will publish a review into the operation of the scheme to help inform decisions on and additional support after the initial six-month period. This review is to focus particularly on identifying the most vulnerable non-domestic customers and how it can continue to assist them.
Government Energy Relief Scheme – further information
Further information on the relief scheme is provided on the Government website here.
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