Business energy support

Comment from Ian Gadsby, managing director of Cold Chain Federation Ylem Energy.

“The announcement today of the government’s Energy Relief Scheme for non-domestic customers will no doubt be welcomed by all businesses facing huge price inflation for both gas and electricity.

“However, the scheme only provides six month’s breathing space with little indication of what business maybe exposed to when the support ends. A close reading of the government’s statement reveals two key points.

“Firstly businesses will pay significantly more for their electricity than the headline figure of 21p per kWh which is based on the wholesale price of electricity. It doesn’t include the standing fees charged by the electricity companies. As a result it is likely the price businesses will face will be higher than the 21pkWh headline.

“Secondly, after six months most businesses will stop receiving any support, with the exception of ‘the most vulnerable non-domestic customers’. Business Secretary Jacob Rees-Mogg is basically giving businesses just six months to reduce their energy consumption and look at ways of generating their own energy.

“Energy costs will be volatile and uncertain well beyond the six month support period. So businesses need to act now to develop an energy strategy and look at measures such as installing solar panels and other generation options. Such measures often take well over six months to deliver, so every day or delay is another day of avoidable costs for business.”

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