Finally, British businesses have some clarity about how ministers will help them weather the storm of soaring electricity costs this winter.
Energy bills will be halved for businesses, the government confirmed today, as it announced details of its price cap.
The new measures will see the wholesale price for non-domestic customers – including schools, hospitals and charities – cut to around half of the expected wholesale price, in a scheme that will run for six months from 1 October.
Under the scheme, wholesale prices will be fixed at £211 per MWh for electricity and £75 per MWh for gas, with the discount automatically applied to businesses’ bills.
The new support package – unveiled this morning by Business Secretary Jacob Rees-Mogg – will be reviewed after three months, with the possibility of extending the scheme for “vulnerable businesses”.
Rees-Mogg said the measures would give businesses equivalent support to that announced for households two weeks ago.
How much will it cost the taxpayer? A whopping £25 billion according to Martin Young, an analyst at Investec, while other experts are predicting it could run up a bill of £40bn.
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