Our new Prime Minister, Liz Truss, has announced additional support for families and businesses to help minimise the impact of rising energy bills. The home energy support is well documented, but what about for businesses?
Businesses, charities and public sector organisations are facing hughe pressure with their energy bills!
There has been a flurry of lobbying by various energy-hungry commercial groups to have their energy bills reduced. Many are predicting mass close-downs and insolvency if their requests are not met.
In the announcement today it was confirmed that the scheme fixes gas and electricity prices for businesses for six months from the 1st of October 2022, to help firms facing soaring costs from going bust.
"Schools, hospitals and charities will also get help!"
This means that wholesale prices will be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas and companies will not need to contact suppliers as the discount will automatically be applied to bills.
Savings will be seen from October, but received in November, and the scheme applies to fixed contracts agreed on or after the 1st of April 2022, and variable and flexible tariffs and contracts.
The scheme is going to be reviewed after three months with an option to extend support for any vulnerable businesses, but it is yet not known what sectors come under that category.
Our new Prime Minister, Liz Truss, said that the government understands the "huge pressure businesses, charities and public sector organisations are facing with their energy bills. I also intend to boost the UK's homegrown energy supply, fixing the root cause of the problems we are facing."
The Government will provide energy suppliers with the difference between this new lower price, and what energy retailers would charge their customers were this not in place!
Schemes previously funded by green levies will also continue to be funded by the Government during this two-year period to ensure the UK's investment in home-grown, secure renewable technologies continues.
I feel this is a very positive move by our new Prime Minister and her newly-appointed Cabinet. It seems news and policy about energy bills have been on hold due to the national mourning period for Her Late Majesty, now it's all hands to the pumps again to sort it out.
I'll keep you informed as I know more.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the Government's support for business energy bills, it may be a great idea to give me a call on 01908 774320 and let's see how I can help.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
