Businesses respond to government measures to help cut energy bills

  • Under the proposals announced today businesses will see their energy costs capped at 21.1p per kWh for electricity and 7.5p per kWh for gas – which the government suggests will be half of the anticipated wholesale price this winter.
  • The period of help will last for six months and then be reviewed for ‘vulnerable’ sectors
  • Changes will apply to contracts taken out since 1st April and apply from 1 October to 31st March 2023 and show on October bills, usually received in November
  • The government seems to be encouraging firms on variable to move to fixed term

Nick Paterno, managing partner at McBrides Chartered Accountants in Kent, said:

“It was good to hear the detail today from the Business Secretary Jacob Rees-Mogg and these measures will go some way to helping businesses under pressure from soaring energy costs. The welcomed help for the next six months over the winter could be a lifesaver for SMEs whose energy costs form a large part of their overall business running costs.

“In terms of what happens after the initial six months, many SMEs and owner managed businesses may be forgiven for asking whether there are sectors more vulnerable than others, when the act of running a business requires so much more than mere faith and ability, especially during the last two unprecedented years of pressure. It’s difficult to know if this is just a case of ‘kicking the can down the road’ or if it provides substance for future planning.

“Speaking to clients, many need to know more about government plans to support business this year and want to hear as soon as possible whether National Insurance rises will be revoked not just for individuals but for businesses too.

“Businesses will be hoping for more from the new Chancellor this Friday. We have seen that clients we help and advise in the south east are attempting to move ahead positively and there is growth.  We hope that the mini budget this Friday and the rumoured full Budget at the end of the year will make further moves to support that growth.”