From April 2023, UK businesses will experience reduced support for their energy bills as the government tries to cut the cost of compensating for soaring gas and electricity prices.
We’ve shared our top-line insights below:
The Treasury confirmed that support for businesses will be capped at £5.5 billion over 12 months from April 1, 2023.
According to a statement, gas bills will be discounted by up to £6.97 per megawatt-hour (MWh) while electricity bills will receive up to a £19.61 per MWh discount. However, heavy energy-using sectors such as glass, ceramics, and steelmakers will receive discounts that reflect the difference between a price threshold and the relevant wholesale price.
Although the energy support scheme is mainly used by businesses, it is also available for charities and public sector organisations such as schools and hospitals. Chancellor Jeremy Hunt’s top priority is tackling the rising cost of living, which is a struggle for both families and businesses. Therefore, he believes that tough decisions must be taken to bring down inflation while providing as much support to families and businesses as possible.