Gosport MP, Dame Caroline Dinenage, has welcomed the Government announcement outlining support for businesses, charities and public sector organisations to combat rising energy bills. This support will last for 6 months, with discounts starting on 1 October.
The new Energy Bill Relief Scheme will provide a discount on wholesale gas and electricity prices, fixing the price per unit for a 6 month period. The cost per unit is expected to be £211 per MWh for electricity and £75 per MWh for gas, far below the anticipated wholesale prices for this winter.
This discounted rate will apply automatically to fixed price contracts agreed on or after the 1 April 2022, with the discount starting from October 2022. Customers entering fixed price contracts after 1 October will also receive the same rate. Variable tariffs will also receive a per-unit discount, lowering the cost of bills although these may still be subject to price increases.
A review of these measures will be launched in 3 months to help inform policy decisions for support after the 6 month period.
Commenting on the announcement, Dame Caroline said:
“It is great news to see that the Government is supporting local businesses by providing much needed security, by fixing energy prices to avoid the rises over the winter months. This announcement will ensure that businesses in Gosport, Stubbington, Lee on the Solent and Hill Head are able to stay profitable, protecting jobs and our local economy.”
“By providing similar support given to household consumers, businesses and charities will be able to plan with greater certainty for the winter ahead. This is much needed support for the economy, both locally to the Gosport constituency and across the country.”
Prime Minister Liz Truss said of the announcement:
“I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.”
“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind. At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”
The announcement has also been welcomed by industry. Kate Nicholls, CEO of UK Hospitality said:
“This intervention is unprecedented and it is extremely welcome that government has listened to hospitality businesses facing an uncertain winter. We particularly welcome its inclusiveness – from the smallest companies to the largest - all of which combine to provide a huge number of jobs, which are now much more secure.”
“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.”