There’s a cap on how much energy suppliers can charge consumers for gas and electricity, which is reviewed twice a year. This means there’s a limit to the standing charges and unit rates for people on a default tariff (so it’s a cap on units rather than what you pay).
But businesses pay a different rate for their gas and electricity – and unfortunately, there isn’t a cap on how much suppliers can charge.
In an announcement to the House of Commons on 8 September, Liz Truss announced energy bill support for consumers and businesses.
She said that the energy price cap will be fixed at £2,500 a year for a typical home for two years from 1 October. Green levies will also be temporarily suspended.
While there isn’t a price cap for businesses, Liz Truss has confirmed an equivalent guarantee for businesses for six months.
This means that energy costs for businesses will be capped at the same price per unit as consumers, but further details about business support are less clear.
The prime minister has said that this business support will be reviewed in three months. The chancellor will also be working with businesses over the coming months to see whether support should be more targeted on those that are vulnerable, for example, hospitality businesses.
Liz Truss said that businesses with the ‘wherewithal’ to support themselves through this tough cost of living crisis should look at seeing where they can improve energy efficiency
Source Liz Truss: energy bill support for small businesses | News (simplybusiness.co.uk)
Image: British Steel
