Announced yesterday (Wednesday 12 October), the update Government’s EBRS extension 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.
However, the NTIA urged the Chancellor to explore other avenues to help the sector to aid survival.
Headroom to survive
NTIA CEO Michael Kill said: “The Government has extended the energy price guarantee scheme to stop businesses falling through the gaps.
“While we appreciate the Government listening to our concerns and feedback, it is too little too late for many. Current debt and rising costs are still placing an immense amount of pressure on night-time economy businesses.
“We need the Chancellor to cut VAT across the board and extend business rates relief, to give us the financial headroom to survive.”
For all non-domestic energy users across the UK, the Government-supported price has been set at £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas.
Positive move
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.
This comes as UKHospitality (UKH) chief executive Kate Nicholls hailed the extension as “positive move”, claiming the bill would provide “relief” for many hospitality businesses.
She 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.”
