This update is part of the energy bills support package announced on 8 September 2022. This was shared by the Department for Business, Energy & Industrial Strategy. The full factsheet which outlines Energy Price Guarantee support for households, and support for businesses and non-domestic consumers with energy bills can be seen online here.
Support for businesses and non-domestic properties
Providing support to businesses
While the majority of UK non-domestic customers are on fixed price energy deals, some are not. Businesses did not benefit from the Ofgem price cap and there was a risk that some would fall through the gap, unable to fix their energy price and unable to access the kind of support we are making available to households.
A new 6 month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will be offered support as is being provided for consumers.
After this initial 6 month scheme, the government will provide ongoing focused support for vulnerable industries.
There will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support.
Further details will be published shortly.
Reform to address long-term issues in the UK’s energy sector
Reducing the cost
While the intervention will be funded by the government, action is being taken to significantly reduce the cost over time, including:
Energy Supply Taskforce
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 government will negotiate with renewable producers to reduce the prices they charge as well.
Energy Markets Financing Scheme
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. The Energy Markets Financing Scheme will enable stability to both energy and financial markets, and the economy, and reduce the eventual cost for businesses and consumers. The scheme will provide short term financial support and will be designed to be used as a last resort.
Learning from the mistakes of the past, the government is taking action to accelerate domestic energy supply, increase our energy resilience and achieve our ambition to make the UK an energy exporter by 2040:
- launch a new oil and gas licensing round as early as next week, expected to lead to over 100 new licences.
- lift the moratorium on UK shale gas production - enabling developers to seek planning permission where there is local support, which could get gas flowing in as soon as 6 months
- drive forward the acceleration of new sources of energy supply from North Sea oil and gas to clean energy like nuclear, wind and solar
- continue progressing up to 24GW of nuclear by 2050, with Great British Nuclear helping to set direction of getting new nuclear projects online in the UK
- undertake fundamental reforms to the structure and regulation of energy market through recommendations from a new review of the UK energy regulation
- launch a review to ensure we are meeting our net zero 2050 target in an economically-efficient way, given the altered economic landscape; chaired by Chris Skidmore MP and reporting by the end of this year, it will ensure delivering the target is not placing undue burdens on businesses or consumers