The Business Secretary Jacob Rees-Mogg has announced the launch of the new Energy Bill Relief Scheme to help cut energy bills in the non-domestic sector. The new scheme will cover all non-domestic energy customers, including UK businesses, the voluntary sector, for example charities and the public sector such as schools and hospitals.
This new support measure will apply to fixed contracts agreed on or after 1 April 2022, and to deemed, variable, flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023 and will be automatically applied to qualifying businesses fuel costs. The level of price reduction for each business will vary depending on their contract type and circumstances.
The discount on energy costs for the non-domestic sector is broadly equivalent to the Energy Price Guarantee for households that was announced earlier this month. This Energy Price Guarantee will see the average household have their energy bills capped at £2,500 a year.
Whilst the support for households has been put in place for two years, the Energy Bill Relief Scheme for non-domestic energy users will apply for six months. However, the government has said that further support to those deemed eligible will be available after the end of the initial six-month support period.
Commenting on the launch of the scheme, the Prime Minister Liz Truss said:
‘I understand the huge pressure businesses, charities and public sector organizations 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.’