Government Announces Energy Bill Relief Scheme
The Government has confirmed details of a new Energy Bill Relief Scheme for non‐domestic customers, which will apply from 1 October 2022 for six months. All businesses in Great Britain and Northern Ireland on either a fixed price energy contract signed after 1 April 2022 or deemed, variable or flexible energy tariffs will receive a discount on their energy bills funded by the Government.
- Businesses on a fixed price contract will pay £211 per megawatt hour of electricity and £75 per megawatt hour of gas, which is the Government Supported Wholesale Price.
- Businesses on default, deemed or variable tariffs will receive a per‐unit discount on energy costs, which is likely to be around £405 per megawatt of electricity and £115 per megawatt of gas. The Government is advising businesses to move to a fixed price contract as there will be a maximum discount funded for those that remain on a variable tariff.
- The discount will be automatically applied to a company’s energy bills by their supplier and there is no need to apply for it.
The scheme will be reviewed in three months’ time when a plan will be published setting out what further Government support will be made available to the most vulnerable non‐domestic customers after the six‐month period ends on 31 March 2023.