The government has thrown a lifeline to businesses, charities and public sector organisations such as schools and hospitals, with its energy price cap announcement.
The wholesale price for non-domestic energy is expected to be fixed at £211 / MWh for electricity and £75 / MWh for gas; an estimated 45% discount on the wholesale prices last week. The way it will be applied to non-domestic customers will vary
Equivalent support will be given to those using heating oil and alternative fuels.
The discount will be applied directly to business customers’ bills from October and they do not need to take any action.
Unfortunately, by only being fixed for six months from 1st October 22 to 31st March 2023, it does not help firms with longer term planning.
While this may give some retail and hospitality business owners hope for Christmas with a stay of execution, the six month time frame is unlikely to help seasonal firms who close for the winter, for whom the future remains uncertain for some time to come.
With many years’ experience helping our business and organization clients with cash flow, forecasting, and business advice, we are well-placed to help you through this taxing time. Give us a call now to see what solutions we can suggest for you.
