Wholesale energy prices for businesses will be capped at 'less than half' of the
anticipated winter levels under the government's support package.
The Energy Bill Relief Scheme offers discounts for all firms for six months from
1 October.
Hospitals, schools and other settings such as community halls and churches will
also get help.
Under the scheme, revealed by the Department for Business, Energy and Industry
(BEIS), wholesale prices are expected to be fixed for all non-domestic energy
customers at £211 per MWh for electricity and £75 per MWh for gas.
Firms do not need to contact suppliers as the discount will automatically be
applied to bills.
The scheme applies to fixed contracts agreed on or after 1 April and variable and
flexible tariffs and contracts.
Kate Nicholls, CEO of UKHospitality, said:
'This intervention is unprecedented and it is extremely welcome that
government has listened to hospitality businesses facing an uncertain
winter. We particularly welcome its inclusiveness – from the smallest
companies to the largest - all of which combine to provide a huge number of
jobs, which are now much more secure.
'The government has recognised the vulnerability of hospitality as a sector,
and we will continue to work with the government, to ensure that there is no
cliff edge when these measures fall away.'
The announcement followed the launch of the Energy Price Guarantee for
households. This will also cap the unit price of energy so that the typical UK
household will now pay up to an average £2,500 a year on their energy bill for
the next two years.
Speaking at the Mini Budget, Chancellor Kwarteng confirmed that the two schemes
would cost a combined £60 billion for six months.