Britain halves electricity and gas prices for businesses
BRITAIN said on Wednesday (Sep 21) it would cap the wholesale cost of electricity and gas for businesses at less than half the market rate from next month, following a similar scheme for consumers, helping relieve the pressure of soaring energy costs.
It said wholesale prices for electricity would be capped at about £211 pounds (S$338) per megawatt hour (MWh) and for gas at £75 pounds per MWh.
“We have stepped in to stop businesses collapsing, protect jobs, and limit inflation,” finance minister Kwasi Kwarteng said.
The level of the cap has been set at less than half the wholesale prices anticipated this winter, the government said. The price will be confirmed on Sept 30.
Suppliers will be compensated for the reduction in wholesale gas and electricity unit prices that they are passing onto non-domestic customers, it said.
The scheme will initially apply from Oct 1 to Mar 31 2023, for all non-domestic energy users, including charities and the public sector such as schools and hospitals as well as businesses.
The government also announced support for households in Northern Ireland on the same level as the equivalent scheme in the rest of the United Kingdom.
“This support package is significant and will ease the cost pressures that have been piling up on businesses,” says British Chambers of Commerce director-general Shevaun Haviland. She said it will allow many firms that were facing closure, or having to lay off staff or reduce output, to keep going through the winter.
But she warned that “some businesses will still struggle to meet their bills despite this government intervention, the Chancellor must prioritise those firms in his mini-budget on Friday.” REUTERS
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