MAKE CHANGE POSSIBLE.

The Government has today announced the energy bill relief scheme for UK businesses, charities and public sector organisations.

https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses

The key points of the scheme are as follows:-

• The scheme applies to UK businesses, charities and public sector organisations.

• It applies to fixed price contracts, flexible contracts and default, deemed (out of contract) and variable contracts.

• The scheme will run for an initial six month period from 1st October 2022 through to 31st March 2023

• The government has set a supported wholesale price – expected to be £211 per MWh (21.1p per kWh) for electricity and £75 per MWh (7.5p per kWh) for gas.

• This is a wholesale price cap only and non-energy costs will still apply.

• Customers on fixed price contracts that were agreed after the 1st April 2022 will be eligible for the scheme (providing the wholesale element is above the supported price) No action will need to be taken and unit costs will be reduced from October 2022.

• Those on default and deemed contracts will receive a per-unit discount up to a maximum of the difference between the supported price and the average expected wholesale price. Suppliers are being encouraged to offer customers fixed price contracts for the duration of the scheme.

• The maximum discount is anticipated to be £405 MWh electricity and £115 MWh gas, subject to market price fluctuation.

• For businesses on flexible contracts the level of reduction will be calculated by the supplier and is subject to the maximum discount above.

• A similar scheme is being established for businesses in Northern Ireland.

• Equivalent support will be offered to businesses who use alternative heating oils.

• The scheme will be reviewed in 3 months with particular focus on identifying the most vulnerable businesses.

Further clarity on the scheme is required particularly around non-energy cost and also the impact on clients on default tariffs and businesses on flexible contracts.

Please contact Planet First Energy to discuss how we can support your business