The Government is to limit the wholesale costs for gas and electricity in the business sector with their Energy Bill Relief Scheme.
Energy suppliers will be obliged to incorporate a capped wholesale price of 21.1p/kWh for electricity and 7.5p/kWh for gas for comparison, wholesale costs for this winter are currently expected to be around 60p/kWh for electricity and 18p/kWh for gas.
Only energy contracts signed with suppliers since 1st December 2021 will be covered by the Energy Bill Relief Scheme. It will apply to energy usage from 1 October 2022 to 31 March 2023 inclusive.
Based on what we know here’s our advice on what to do if:
- You signed a contract that started before 1st December 2021
You don’t have to do anything in the short-term. Most likely you’re already paying wholesale rates below the new cap.
- You signed a contract that started after 1st December 2021
You’ll be covered by the Energy Bill Relief Scheme, for a minimum of 6 months. We can provide you with ongoing updates when we receive them from the Government.
- You are out of contract
There’s now no advantage sitting on out of contract rates. With lower energy costs not anticipated until 2025, the best deals available are on a 3yr+ ﬁxed-term energy contract. This is 35% lower than a one-year ﬁxed. We can help you ﬁnd the best long-term deal. Our team of business energy experts can help you. Send us a copy of your most recent bill and we’ll do the rest.
- Your contract is due to end in the next 6 to 12 months
We can help you review your options. When your contract does come up for renewal do not automatically go with your current provider. 9 times out of 10 this rate can be beaten when you shop around.
If you share with us your most recent bill and your contract end date our team can review your options and for you and get back in touch with the best available option and rate.
More information can be found on the government website here.