The government will cut the wholesale price of energy for businesses by more than half of expected levels this winter in a bid to “prevent unnecessary insolvencies”.
For six months beginning October, the wholesale price per unit that businesses, charities and public sector organisations pay for energy will be set at £211 per megawatt-hour of electricity and £75 per MWh for gas. The government said this is less than half of levels predicted this winter.
A review of the scheme will be published in three months to inform decisions on future support after it ends in March 2023.
Ian Paton, partner in building consultancy at Cluttons, said the move must be “swiftly followed by longer-term, fast-paced legislation that will increase the UK’s renewable programme and decrease our reliance on foreign imports”. He called for a “real focus” on financial support for businesses to invest in energy infrastructure, such as a “planning fast track” for green roofs, as well as making EPCs and building regulations “more fit for purpose”.
Kate Nicholls, chief executive of UKHospitality, welcomed the proposal, calling it “unprecedented”. “The government has recognised the vulnerability of hospitality as a sector, and we will continue to work with the government to ensure that there is no cliff edge when these measures fall away,” she added.
However, Jackie Mulligan, a High Streets Task Force expert and founder of ShopAppy, said the measures will come “too late” for many small businesses.
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