Energy bills for businesses will be frozen for six months from 1st October, prime minister Liz Truss has announced today.
It is a huge contrast to the help offered to households which will see average energy bills capped at £2,500 for at least two years.
The announcement means businesses will see energy bills capped at the same price per unit – or kilowatt hour (kWh) – as households will pay under the government’s new plans.
The scheme will run for six months with any further support targeted at “vulnerable sectors”, including hospitality. Business secretary Kwasi Kwarteng will work with businesses to review where this should be targeted to make sure those most in need get support. This review will be concluded within three months “giving businesses certainty”, the PM added.
She added: “I recognise that people are struggling with their energy bills and that is why I have brought forward this debate as soon as possible to give people reassurance ahead of this winter that energy bills are going to be affordable.”
Businesses on a fixed tariff can either stay or leave and switch to the new state-subsidised tariffs with no exit penalties. The new rates are yet to be announced.