November 2, 2022
The new wholesale energy prices will be set at £211 per MWh of electricity and £75 per MWh for gas. Starting from the 1st of October, 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 of April 2022. This scheme will last at least 6 months, with a review after 3 months to decide whether it should be extended or whether more support is required across different sectors.
However, some claim that it is a little too late and the prices have not been cut enough to support struggling small businesses which have had an increase of over 300%.