Philip Dunne MP has welcomed the Government’s announcement this week of support for businesses facing rising energy bills continuing until March 2024 – to provide some certainty against continued high global wholesale energy prices due to the war in Ukraine. 

The package totalling £5.5 billion will limit taxpayers’ exposure to the worst effects of energy costs and inflation. The new scheme will benefit businesses, charities, and the public sector, replacing the existing scheme which ends on 31st March.

Energy prices are beginning to fall, and these measures will provide businesses with confidence that their risk against price volatility has some protection.

The new Energy Bills Discount Scheme will provide businesses tied into contracts before recent price falls with a discount of up to £6.97/MWh to their gas bill, and up to £19.61/MWh for electricity bills with significantly more support available to energy-intensive trades.

Energy intensive businesses will receive a discount reflecting the difference between a price threshold and the relevant wholesale price. The threshold for those deemed as Energy Intensive Industries will be capped at £99/MWh for gas and £185/MWh for electricity. However, the higher discount will only apply to 70% of energy volume and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.

Commenting, Philip Dunne said:

“I appreciate the anxiety which volatile energy prices is causing many businesses and organisations across South Shropshire. The Chancellor has made it clear protecting the backbone of the economy is crucial to tackling inflation and making sure both businesses and consumers can trade with confidence. 

“High energy prices are a real concern for small businesses, our industrial sector and those who are self-employed. So, clarity over the available support this winter should help businesses to plan and protect jobs and livelihoods.

“Applicable Businesses with commercial energy contracts will automatically be eligible to receive the new rate from April for the per-unit discount to energy bills during the 12-month period from April 2023 to March 2024. The relative discount will be applied if wholesale prices are above a certain price threshold.

“A much greater level of support is available to businesses in Shropshire which are the most energy and trade intensive, in particular our manufacturing companies, which are some of the largest employers in South Shropshire. 

“The scheme will be rolled out seamlessly and end users need not apply for their discount. As with the current scheme, suppliers will automatically be able to apply reductions to businesses who qualify for the support”.