Support from UK Government Regarding Business Energy Costs

We know businesses are concerned about the level of support that might be available from the Government with their energy bills. Our strategic partner MakeUK has been able to provide the below initial information which may be useful for members until fuller details are available.

  • The new scheme for non-domestic customers which will include businesses will be introduced with support ‘equivalent’ to that of consumers
  • The scheme may look differently for the largest users
  • The scheme will run for 6 months with a 3 month review mid-way through
  • After 6 months the scheme may continue but only targeted at the most vulnerable – the definition of which is to be confirmed
  • Simultaneously Government will look at energy efficiencies
  • Because this requires legislation the scheme for non-domestic users will not begin until the end of November
  • Only those companies who are on variable or deemed tariffs or had to fix at a recent (and therefore high) rate will be eligible
  • There may be a discretionary support scheme for those who won’t get full benefit (presumably the ones that don’t meet the above criteria but this is to be confirmed)
  • A parallel scheme will run in Northern Ireland also
  • The scheme will essentially be giving market providers discount on wholesale which they can then pass onto customers (our members) who will in turn see a reduction in their bills. The exact ‘discount’ and numbers are still to be decided
  • In practice, the Government will provide energy suppliers with the difference between this new lower price, and what energy retailers would charge their customers were this not in place
  • Schemes previously funded by green levies will also continue to be funded by the Government during this two year period to ensure the UK’s investment in home-grown, secure renewable technologies continues
  • This new intervention will be funded by Government
  • A new Energy Supply Taskforce led by Madelaine McTernan who headed up the UK’s successful Vaccine Taskforce – has begun negotiations with domestic and international suppliers to agree long-term contracts that reduce the price they charge for energy and increase the security of its supply
  • The Taskforce and Department for Business, Energy and Industrial Strategy will negotiate with renewable producers to reduce the prices they charge as well
  • HM Treasury are announcing a joint scheme, working with the Bank of England, to address the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and electricity markets.


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