UK Department for Business: We will cap electricity and gas prices for businesses

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The UK Ministry of Enterprise announced on Wednesday that it will cap the cost of electricity and gas for businesses.

Key points

electricity prices for businesses they will be limited to 211 pounds per megawatt hour (MWH).

gas prices for businesses they will be limited to £75 per MWH.

Providers will apply reductions to invoices of all qualifying non-domestic customers.

The discount will reflect the difference between the price supported by the Government and the wholesale price corresponding to the day the contract was agreed.

The Government will compensate suppliers for the reduction in wholesale unit prices of gas and electricity that they transfer to non-domestic customers.

The discounts will apply to contracts signed from April 1 of this year.

The support will automatically apply to all eligible invoices.

Within three months, a study on the operation of the plan will be published, which will serve as the basis for making decisions on future supports after March 2023.

Discounts will apply to energy use initially between October 1, 2022 and March 31, 2023.

A similar scheme will be established in Northern Ireland, providing a comparable level of support.

Emergency legislation is being introduced to support the plan.

The emergency legislation will be introduced as soon as possible, when Parliament returns from recess in October.

Meanwhile, the country’s Finance Minister, Kwasi Kwarteng, has stated: “We have intervened to prevent the collapse of companies, protect jobs and limit inflation“.

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Source: Fx Street

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