Through a new Government Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers – including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals – whose current gas and electricity prices have increased significantly.
The scheme will run for an initial six months and support will be equivalent to the Energy Price Guarantee recently put in place for residential households (see related article). It will apply to fixed contracts agreed on or after April 1 this year, as well as other contracts. The savings will be first seen in October bills, which are typically received in November.
The government says agencies and businesses will not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills. The level of price reduction for each business will vary depending on contract type and circumstances.
The government will publish a review into the operation of the scheme in three months to inform decisions on future support after March 2023.
