The UK government has published detail of its new energy price support scheme for non-domestic customers in Great Britain. The Energy Bill relief scheme is separate to the government’s energy price guarantee scheme for domestic households (although the level of discount is broadly similar), and will initially operate to apply reductions to energy usage between 1 October 2022 and 31 March 2023. A similar scheme is to be announced for Northern Ireland.
The scheme will provide a discount on gas and electricity prices for non-domestic energy users including businesses, charities and public sector organisations. This will be calculated based on a ‘government supported price’ which is expected to be significantly lower than the wholesale price.
The reductions, which will be funded directly by government, will be applied automatically by suppliers. Measures are expected to ensure that suppliers do ‘not profit from the scheme other than for its intended purpose of providing relief on necessary energy bills’.
The Department for Business, Energy and Industrial Strategy (BEIS) guidance note sets out a number of examples of how the support package will apply for various different businesses. For non-domestic customers who use heating oil, the high-level government press release confirms that details of equivalent support ‘will be announced shortly’.
The scheme is to be reviewed after three months and the review will inform decisions on future support after March 2023. Legislation to implement the scheme is expected to be introduced in October following the Parliamentary recess.
The UK government has published detail of its new energy price support scheme for non-domestic customers in Great Britain. The Energy Bill relief scheme is separate to the government’s energy price guarantee scheme for domestic households (although the level of discount is broadly similar), and will initially operate to apply reductions to energy usage between 1 October 2022 and 31 March 2023. A similar scheme is to be announced for Northern Ireland.
The scheme will provide a discount on gas and electricity prices for non-domestic energy users including businesses, charities and public sector organisations. This will be calculated based on a ‘government supported price’ which is expected to be significantly lower than the wholesale price.
The reductions, which will be funded directly by government, will be applied automatically by suppliers. Measures are expected to ensure that suppliers do ‘not profit from the scheme other than for its intended purpose of providing relief on necessary energy bills’.
The Department for Business, Energy and Industrial Strategy (BEIS) guidance note sets out a number of examples of how the support package will apply for various different businesses. For non-domestic customers who use heating oil, the high-level government press release confirms that details of equivalent support ‘will be announced shortly’.
The scheme is to be reviewed after three months and the review will inform decisions on future support after March 2023. Legislation to implement the scheme is expected to be introduced in October following the Parliamentary recess.
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