Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Energy bill support for firms set to be cut

by January 9, 2023
January 9, 2023
Energy bill support for firms set to be cut

A new scheme to support firms with their energy bills will be announced in the House of Commons on Monday.

The current scheme which caps the unit cost of gas and electricity for all businesses expires at the end of March.

It will be replaced with a new scheme that offers a discount on wholesale prices rather than a fixed price.

Very heavy energy-using sectors, such as steel, glass and ceramics, are expected to get a larger discount than others, Treasury sources said.

The energy support scheme is mainly used by businesses, but is also for charities, and public sector organisations such as schools and hospitals.

Firms have been warning of a “cliff-edge” when the current support stops at the end of March, and the new scheme is expected to run until March 2024 to avoid this.

But the total level of government support is expected to fall sharply – by more than half – from the £18.4bn the current six-month scheme is estimated to have cost by the time it ends.

This is partly due to wholesale energy prices falling very sharply in recent months.

European gas reserves have held up better than expected thanks to an unusually mild winter in northern Europe.

Wholesale gas prices are now below the level they were before Russia’s invasion of Ukraine, but still three to four times higher than their long-term average.

All businesses can expect their energy bills to rise after March at the same time that government support for households will become less generous.

The bill for a typical household could rise from £2,500 a year to £3,000 a year from April – although energy analysts cautiously forecast that average bills may fall to £2,800 a year next October if current market conditions continue.

That would be a crumb of comfort for households and could save the government billions in subsidies.

But the bottom line is that energy prices are going up this year for businesses at the same time as their customers’ incomes are being squeezed even further.

Read more:
Energy bill support for firms set to be cut

0
FacebookTwitterGoogle +Pinterest
previous post
UK manufacturers say foreign investors are turning away from unstable Britain
next post
Are tech job cuts a warning for the wider economy?

You may also like

Aspire to be a forever founder and the...

March 5, 2024

How a Compliance Expert Can Streamline UK Company...

October 14, 2024

Virgin Orbit ceases operations months after failure of...

May 24, 2023

Scaling Success: Celebrating Achievements at Paul Avins’ Grown...

January 25, 2024

How Underground Utility Surveying Enhances Safety and Efficiency...

August 8, 2024

7.4 million miss out on career opportunities due...

November 11, 2024

Next raises profit forecast but warns stock could...

January 4, 2024

Charlie Mullins to answer Farage’s call: Pimlico Plumbers...

January 14, 2025

Supporting employees with addiction: Lessons from the accountancy...

July 19, 2023

Startup bank headed by Lord Mandelson raises £25m...

January 14, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved