From l October 2022, the Government’s Energy Price Guarantee will come into force. This will limit the unit price that suppliers can charge for gas, superseding the current energy price cap. As a result, an average household will pay a maximum of £2,500 a year on their energy bill for the next two years.

The Government has stated that businesses will receive ‘equivalent support’ during winter months, with longer lasting support provided for ‘vulnerable’ industries’. The industries eligible for this extra support will be decided in December 2022.

What Does This Mean For My Business?

The full detail of the Energy Price Guarantee for businesses is currently unclear, and we are awaiting further announcements over the coming weeks.

This support package will ensure that your business has some time to adjust, providing some short term certainty. The Government has also assured that these measures will support the wider economy by boosting growth and curbing inflation by 4-5 points.

Other Measures Announced To Tackle The Energy Crisis

  • Energy Supply Task Force 

Negotiations have started with suppliers – both domestic and international – in order to secure long-term contracts which will reduce costs and increase stability of supply

  • Energy Markets Financing Scheme 

A partnership between HM Treasury and Bank of England has been announced, which will work to stabilise both the energy and financial markets. This will offer short term, last resort financial support for wholesale suppliers, which promises in turn to drive down costs for businesses and consumers

  • Acceleration of domestic energy supply 

By 2040, the Government aims for the UK to be an energy exporter, increasing our energy resilience. Measures include:

  • Acceleration of clean energy sources including solar, wind and nuclear
  • Launch of a new round of oil and gas licensing
  • Review of UK energy regulation and a structural reform of the energy market
  • Review of progress towards the UK’s net zero 2050 target

Find Out More

Contact the team at Experienced Energy Solutions to find out more about how we can support your business through the current energy crisis and beyond.

 

Published 13th September 2022