Earlier today, the government revealed brand new plans to help businesses cope with the energy crisis.
From 1st October to 31st March 2023, there will be a cap of 21.1p per kWh applied to electricity, and 7.5p per kWh applied to gas. This is compared to wholesale costs, which are forecast to be 60p and 18p respectively.
The cap will apply to businesses who are on fixed contracts agreed on or after 1st April 2022, as well as to deemed, variable and flexible contracts. The cap will be automatically applied to bills for businesses, public and third sector organisations, with suppliers then compensated by the government. A further review on energy support will take place in three months’ time.
The announcement has come ahead of Friday’s ‘mini’ budget, in which chancellor, Kwasi Kwarteng is expected to announce a range of new measures to ease pressure on businesses and households during the winter and in the face of the cost of living crisis. As ever, we’ll share an update on what’s announced in the budget on Friday.
If you are unclear how you will be impacted by today’s announcement, or you are looking for advice on how to manage your businesses finances to navigate the difficult times ahead please contact your local Champion advisor.