UK government announces caps on energy bills for businesses, charities, public sector organizations

Most vulnerable businesses will receive further support, Prime Minister Truss says.

UK government announces caps on energy bills for businesses, charities, public sector organizations

The UK government on Wednesday outlined its plans to introduce a cap on energy bills for businesses, charities and public organizations for six months starting in October.

The new support plan amid soaring energy bills was unveiled by Business Secretary Jacob Rees-Mogg to support "growth, preventing unnecessary insolvencies and protecting jobs," a statement said.

Through a new Government Energy Bill Relief Scheme, “the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers whose current gas and electricity prices have been significantly inflated in light of global energy prices,” it added.

The government has set a Supported Wholesale Price, which is expected to be £211 ($239) per MWh for electricity and £75 per MWh for gas.

The proposed prices include the “removal of green levies paid by non-domestic customers who receive support under the scheme.”

"We know that businesses are very concerned about the level of their energy bills, that's why we are putting in place a scheme for business that will be equivalent to the scheme for households, to make sure that businesses are able to get through the winter, we're going to review it after six months,” Prime Minister Liz Truss said.

"We'll make sure that the most vulnerable businesses, like pubs, like shops, continue to be supported, after that," she added.

“We have stepped in to stop businesses collapsing, protect jobs, and limit inflation,” Chancellor of the Exchequer Kwasi Kwarteng said.

The business secretary said the UK has “seen an unprecedented rise in energy prices following Putin’s illegal war in Ukraine, which has affected consumers up and down the country and businesses of all sizes.”

“The help we are already putting in place will save families money off their bills, and the Government’s plans for businesses, charities and public sector organisations will give them the equivalent level of support,” he added.

Similar measures were announced for household energy bills two weeks ago, with prices capped at £2,500 ($2,876) a year, for two years.

Hüseyin Demir