UK businesses will see their energy bills cut by around half of their predicted level this winter under a support package announced by the UK government.
Effective from 1 October, the six-month scheme will fix gas and electricity prices for non-domestic energy customers including businesses, charities, schools and hospitals.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts.
Wholesale prices are expected to be fixed at £211 per MWh for electricity and £75 per MWh for gas. The discount will be applied automatically to bills.
Business groups have welcomed the support package, but warned that further help may be needed after the winter.
Kate Nicholls, chief executive of UKHospitality, said the industry was “relieved” by the scheme and welcomed the fact that it covered businesses of all sizes.
Matthew Fell, chief policy director of the CBI, said that the support package would “ease worries about otherwise viable businesses shutting-up shop” and noted that smaller companies in particular will benefit from the discounted rate.
“Businesses will also want to know more about the exit strategy and what happens when the six-month cap runs out,” Fell added.
“The long-run solution is to double-down on energy security and to incentivise firms to push ahead with ambitious energy efficiency programmes to lower demand.”