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21 September 2022

Government announces energy support for businesses

Government announces energy support for businesses

The UK Government has announced details of a new Energy Bill Relief Scheme that will effectively cut energy bills for businesses by around 50% of their expected levels this winter.

The Energy Bill Relief Scheme will fix gas and electricity prices for all firms for six months from 1 October and run for an initial six-month period.

The fixed rates are expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter - which is a discounted price per unit of gas and electricity.

As with the Energy Price Guarantee for households, customers do 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.

New support for households, businesses and public sector organisations facing rising energy bills in Great Britain and Northern Ireland has been unveiled by Business Secretary Jacob Rees-Mogg today (Wednesday 21 September).

The supported wholesale prices for gas and electricity under the scheme will be confirmed on 30 September.

The support will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.

A parallel scheme, based on the same criteria and offering comparable support, but recognising the different market fundamentals, will be established in Northern Ireland.

The Government will conduct a review of the Government Energy Bill Relief Scheme, to be published in 3 months' time.

The BPIF has been collecting vital information directly from companies in the UK printing industry and our survey on Energy Costs is still live - an analysis of current responses reveals that, in the printing industry, the top desired actions from Government are:

  • Price cap on energy prices to business - selected as a top three Government response by 71% of respondents.
  • Enforce a price freeze on energy prices - 44%.
  • Windfall tax on energy prices - 34%.

Charles Jarrold, BPIF Chief Executive said:

"Energy consumption does vary within the printing industry, but it is a significant user.  This support from today's announcement is welcomed, it will reduce some immediate uncertainty, and bolster confidence around current and planned investments.

"We are very conscious that energy prices are likely to stay high for some time and that the announced support covers a six-month period. We welcome the review and will be continuing our regular discussions with Government, in particular the Department for Business, Energy & Industrial Strategy (BEIS), and will be informing our contacts there of the impact on the UK Printing Industry. Getting feedback from companies in the industry will be extremely important in helping us represent our industry to Government."

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For more information please contact:
Kyle Jardine
Kyle Jardine
0289 002 0135