WHAT DOES IT MEAN FOR BUSINESSES?

In September, the government announced further details of its Energy Bill Relief Scheme for businesses and other non-domestic organisations, such as schools and charities.  The support runs from 1 October 2022 to 31 March 2023 and automatically applies to bills. 

 Fixed contracts signed on or after 1st April 2022

• Wholesale power prices are capped at 21.1 p/kWh (Supported Price of £211 MWh)
• Wholesale gas prices are capped at 7.5 p/kWh (Supported Price of £75 MWh)

Those on fixed-price contracts signed before 1 April 2022 do not appear to benefit from the scheme. The extent of this issue will be dependent on the contract price.

iM Energy’s insights

The support will be applied automatically for those businesses already on a fixed-price contract. 

However, it doesn’t mean you are going to pay 21.1p/kWh for electricity and 7.5p/kWh for gas over the Winter.

This is just the wholesale element of your unit price; the price you end up paying will likely be at least double this amount depending on the date you signed the deal.

Please contact us if you want help quantifying where you are going to be this winter, and want insight for the period after the cap ends next spring.