The Government has today published further details of the support we are offering to people and businesses in the face of soaring energy prices. Details of the Energy Price Guarantee for domestic consumers and the Energy Bill Relief Scheme for business and non-domestic properties are available on gov.uk. The Chancellor of the Exchequer will set out more details of the costs of the Government’s support as part of his fiscal statement on 23 September.
How does the Energy Price Guarantee work?
The Energy Price Guarantee for Great Britain will ensure that a typical household pays an average £2,500 a year for their energy, from 1 October 2022 for the next two years. On average usage, a household will save £1,000 a year. This is in addition to the already announced £400 Energy Bills Support Scheme for households across the UK. The most vulnerable UK households will also continue to receive £1,200 of support. For consumers in England, Scotland and Wales who pay for their energy through a monthly, quarterly or other regular bill, the Energy Price Guarantee will be applied when their bill is calculated. The Guarantee limits the amount the bill payer can be charged per unit of gas or electricity, so the exact bill amount will continue to be influenced by how much energy is used.
How does the Energy Bill Relief Scheme work?
The Energy Bill Relief Scheme will provide protections for all businesses, voluntary sector and public sector organisations in Great Britain which face excessively high energy bills over the winter period, whether they are on existing fixed price contracts agreed on or after 1 April 2022, signing new fixed price contracts, variable or deemed tariffs or flexible purchase contracts to administer support, the Government has set a Supported Wholesale Price – 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. Suppliers will pass the reduction in the wholesale price through to their customers.
The Energy Bill Relief Scheme will run initially for 6 months covering energy use from 1 October 2022 until 31 March 2023. The Government will publish a review of the scheme after 3 months. This review will consider how best to offer further support to customers who are the most vulnerable to energy price increases. These are likely to be those who are least able to adjust, for example by reducing energy usage or increasing energy efficiency.
How to you apply for the Energy Prices Support Package?
Families and eligible businesses do not have to take action or apply for support, energy suppliers will automatically apply the appropriate reduction via their energy bill. Households will receive an equivalent level of financial support wherever they are in the UK. The same is true for businesses across the UK too.
Rebecca Harris MP commented:
“I know many people in Castle Point are worried about the rising cost of living and I am therefore very pleased that the Prime Minister has offered valuable and much-needed support in the form of the Energy Prices Support Package. This package of unprecedented assistance for the whole UK provides the certainty families and business owners need to help them manage their energy bills.”
For more information following the Government’s announcement outlining the plans to help cut energy bills for businesses, including comments from the Prime Minister and the Chancellor, please visit: https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses.