Business Energy Announcement…Update

Dear Valued Customer,

Following today’s announcement from the government regarding the Business Energy Price Cap.  There are more details to follow in the coming days but please find herein some basic details about what we know so far.

• The Business Price Cap is believed to be about 21p for electricity and about 10p for gas.  It’s important to understand this is the wholesale price the Suppliers will be paying for electricity/gas and the price charged to the end Customer will be considerably more after the suppliers have added on extra charges and their margin.  Perhaps as much as 40p for electricity and as much as 20p for gas.  (depending on usage)
• The price cap only applies between 1^st October and 31^st March and will be reviewed on an on-going basis, initially after 3 months
• The price cap will be backdated and applied to all contracts agreed from 1^st April 2022
• The discount will be applied to the Customers’ bill directly and it’s believed this will be applied 1 month in arrears (e.g. October’s rebate will appear on the November bill).  Energy companies will then recover the deficit from the government directly.

This situation will continue to crystalise over the coming days and the Government are expected to announced more precise details on Friday.