The government has unveiled its new Energy Bill Relief Scheme, which will support thousands of local shops and other non-domestic businesses for six months from October.
Through the scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers in the UK whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the Energy Price Guarantee put in place for households.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
Prime Minister Liz Truss said: “I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.
“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.”
The government will be reviewing the operation of the scheme in three months to inform decisions on future support after March 2023.
The Association of Convenience Stores has welcomed the package. Chief executive James Lowman said: “We will continue to work closely with the Department for Business, Energy and Industrial Strategy on longer-term solutions to the energy crisis facing convenience stores and other businesses, including ways to incentivise investment in energy-efficient technology.”
National President, Jason Birks, added: “The government has said it will review the situation in three months, and we need firm assurances that ongoing financial support will be available as long as it is needed to see us through this crisis.
“It is about the survival of small businesses, helping them to remain at the heart of their local communities and continue to provide vital services.”
Company owners are warning of potential job losses and increased costs for customers when the scheme ends in April.
Julie Dunn, operations manager at leading Scottish wholesaler Dunns Food and Drinks, said: “These measures give much-needed certainty to us and our customers, especially after a difficult few years.
“Whilst six months of support may not help all businesses, it does bring some relief within the retail and hospitality sectors to allow trading through the vital Christmas period. However, it’s important to stress this is not a silver bullet that is going to fix all the problems facing the sectors.”
Meanwhile, the Petrol Retailers Association (PRA) has written the Chancellor of the Exchequer urging government’s recognition of the need to support forecourts businesses facing soaring energy costs this winter.
Gordon Balmer, Executive Director of the PRA said: “While I welcome the government’s recognition of the need to support businesses, six months of relief does not provide forecourts with sufficient support to survive these critical times.
“If the price of energy rises, our members will face the prospect of having to raise the margin they earn on fuel with the consequent impact on pump prices and ultimately inflation.”
The PRA wants the government to extend its support in the form of the energy price cap to forecourts to a year, with the option to renew for an additional year.
