Government support with business and domestic energy bills begins

Schemes to support both businesses and households with rising energy bills have come into effect from 1st October.

Businesses, charities and public sector organisations will be protected through the Government’s Energy Bill Relief Scheme from October, with all businesses who have entered into a new energy contract since April covered by the support. The scheme discounts the price per unit of gas and electricity for non-domestic customers, similar to Energy Price Guarantee put in place to protect household bills and will see the average billpayer pay £2,500 per year. While household bills will see two years of protection, business energy customers will see their bills cut for the next six months, with the scheme reviewed to become more targeted to the worst affected sectors.

Households will also see the first instalment of the £400 Energy Bill Support Scheme in their October electricity bills. The discount will be automatically applied monthly in six instalments of £66-67 between October 2022 and March 2023.

Prime Minister Liz Truss said:

“I know people across the country are anxious about their energy bills, which is why we have acted quickly to help them.

“Livelihoods and businesses were at stake. The government’s energy support limits the price they pay for gas and electricity, shields them from massive bill increases, and is expected to curb inflation too.

“The cost of not acting would have been enormous. To make sure the British public is not left in this position again, we are also fixing the problem at its source by scaling up home-grown energy and reducing reliance on foreign supplies to boost our energy security and independence.”

The UK Government is also urging people today to stay alert to scams and fraudulent messages. There is no need to apply for the schemes, with most customers receiving today’s support automatically through their electricity bill.

Business and Energy Secretary Jacob Rees-Mogg commented:

“Unprecedented government support is beginning this weekend, protecting families and businesses across the country from what was going to be an 80% increase in energy bills this winter.

“I also urge people today to stay alert to scams. This support will reach people automatically and there is no need to apply.”