The government has announced in Parliament a six month business energy support package which will cap prices businesses will pay in a similar manner to support announced for households.
A typical household will see their bills pegged at roughly where they are today with a price cap of £2500 which will be fixed for two years. This is above the current price cap, but takes into account the £400 already coming to all households plus a couple of extra quid. Many households may see their costs for the next year rise due to more support announced by the previous administration with payments to those on benefits, although it’s not clear what will happen after winter to those on the lowest incomes.
For businesses the situation still lacks clarity – many will already be on fixed deals with their suppliers although traditionally for many companies these will expire in October. There will be a review in 3 months time to give businesses more certainty moving forwards.
The exact business energy support price per kW⋅h for businesses has also not been confirmed – businesses will negotiate energy contracts based on how much energy they consume and some will even be on half hourly tariffs meaning they pay less when demands on the National Grid are at their lowest. This will make pricing complicated but still welcomed by businesses facing uncertainty with nothing but the prospect of massively increased costs.
HM Treasury and the Bank of England are launching the Energy Markets Financing Scheme (EMFS), to address the liquidity requirements faced by energy firms operating in UK wholesale gas and/or electricity markets. The EMFS will enable short term financial support to wholesale firms.