September 22, 2022
What does this mean?
The new wholesale energy prices will be set at £211 per MWhof electricity and £75 per MWh for gas. Starting from the 1stOctober, businesses in the UK will be given a much-needed rest bite from the extremely high prices which they have been plagued with over the past year.
Businesses on other contracts, such as variable rates, will have a maximum discount band, the government said, to be around per MWh for electricity and £115 per MWh for gas. These prices are subject to wholesale market developments and the government is working with suppliers to make sure companies are able to switch to fixed-rate contracts.
These changes will affect companies on contracts that were agreed on or after the 1st April 2022. This scheme will last at least 6 months, with a review after 3 months to decide whether it should be extended or more support is required across different sectors.
The government are also encouraging businesses to switch into a fixed price deal to potentially save more money.
However, some claim that it is a little too late and the prices have not been cut enough to support struggling small businesses who have had an increase of over 300%.
If you would like to speak to any of our team surrounding any issues you have or are unsure what this means for your business, then please give a member of our team a call on 0800 031 5470 and we will be happy to help!
