Government support available to businesses could save them 20% on energy bills
5th July, 2023
High energy use businesses have until 25 July 2023 to apply for government support that could reduce their wholesale energy costs by as much as 20%, with the discount backdated to 1 April 2023 and applied to bills until 31 March 2024.
The scheme has been introduced to keep costs down by offering a higher level of support to those businesses that use significant amounts of energy to deliver goods and services, such as ceramic and textile firms. Many of these businesses have strong international competition and are unable to raise prices to cover increased energy costs.
Heat network operators also have a legal obligation to apply, ensuring customers who would otherwise face higher energy bills compared to those covered by the energy price cap get a fair deal. Operators who don’t apply to the scheme could face a fine of up to £5,000.
Businesses are urged to check GOV.UK as soon as possible to find out whether they are eligible and what they need to do to apply. Businesses that become classified as an ‘Energy and Trade Intensive Industry’ after the deadline will have 90 days from the first date they can apply to submit an application for support. More information can be found here.
If you have any questions on the above and how it will affect your business please do not hesitate to contact Susan Honeyands, or a member of our expert Commercial Team.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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