Welcome news for business on energy price caps
The Energy Bill Relief Scheme sees wholesale prices for businesses capped for 6m from 1st October to 31st March.
Prices are expected to be capped for business customers at £211 per Mwh (21p per kwh) for electricity and £75 per Mwh (7.5p per Kwh) for gas. Without the scheme wholesale prices were expected to reach £600 per MWh for electricity and £180 per MWh for gas. The discount will be automatically be applied to firms through their energy supplier.
The scheme will be relevant to fixed contracts agreed on or after 1st April 2022 and also variable tariffs.
This scheme is well received especially those businesses which use a lot of energy such as in manufacturing, dairy farming and hospitality.
Further information is available on gov.uk.