The update to the Government’s EBRS means businesses that signed new energy deals from 1 December 2021 will be given a discount on unit prices for gas and electricity. The contracts covered by the discount scheme were originally between 1 October 2022 and 31 March 2023 – seven months after the war in Ukraine began – which pushed up energy deal prices.
Nicholls said: “The Government’s intervention to support hospitality businesses facing soaring energy costs this winter is extremely welcome and it’s fantastic to see this legislation introduced. The measures in this bill will provide relief to all manner of hospitality businesses, from the smallest companies to the largest.”
Unfair penalisation avoided
She continued: “The introduction of these measures follows months of campaigning by UKH to ensure the Government recognised the huge impact rising energy costs will have on our sector.
“I’m pleased the Government has continued to listen to the sector to ensure its relief package is inclusive for all. Its decision to expand the scheme to include operators on fixed price contracts agreed from 1 December 2021 has avoided unfairly penalising businesses who had acted early to protect themselves from further price hikes. The publication of wholesale energy prices will also provide much-needed clarity for businesses.
“Unfortunately, the reality of this crisis means that, even with this support, energy bills will still be much higher than last year and many hospitality businesses will struggle to make it through to next spring. What the sector really needs now is the introduction of longer-term measures that can allow us to boost economic growth, namely a lower rate of VAT and further business rates relief.”
Discounted prices
For all non-domestic energy users across the UK, this Government-supported price has been set at £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas. As a comparison, wholesale costs in England, Scotland and Wales for this winter are currently expected to be around £600 per MWh for electricity and £180 per MWh for gas.
Energy suppliers will apply reductions to the bills of all eligible non-domestic customers while the Government will compensate suppliers for the reduction in wholesale gas and electricity unit prices that they are passing onto non-domestic customers.
