The Department for Business, Energy and Industrial Strategy unveiled its new Energy Bill Relief scheme on Wednesday 21 September. In it, it announced that wholesale energy prices for businesses will be cut by more than 50% this winter. This covers all non-domestic customers, including all UK businesses, the voluntary sector such as charities and the public sector such as schools and hospitals.
Newly appointed chancellor Kwasi Kwarteng said: “We have stepped in to stop businesses collapsing, protect jobs and limit inflation. And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.”
What does the Energy Bill Relief scheme mean for customers?
Under the scheme, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months.
Conservative party business secretary Jacob Rees-Moog said: “The help we are already putting in place will save families money off their bills, and the government’s plans for businesses, charities and public sector organisations will give them the equivalent level of support.
“This, alongside the measures we are taking to boost the amount of domestic energy we produce to improve both energy security and supply, will increase growth, protect jobs and support families with their cost of living this winter.”
Do you need to apply for the Energy Bill Relief scheme?
Customers don’t need to apply for the scheme or take any action to get support. Support will automatically be applied to your bills. The scheme is due to end in April 2023 but could be extended. The Government has said it will publish a review into the operation of the scheme in three months.