More detail needed on new energy scheme, says AIMS

More detail needed on new energy scheme, says AIMS

The Association of Independent Meat Suppliers (AIMS) has welcomed the government’s latest energy scheme, which aims to help businesses through rising costs, but added that the support does not go far enough.

According to an announcement, the new government scheme will see energy prices for non-domestic energy customers such as businesses, charities and public sector organisations cut, which the government says will protect them from rising energy costs.

Through a new Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the Energy Price Guarantee put in place for households.

It will apply to fixed contracts agreed on or after 1st April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1st October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users.

As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.

Further detail needed

A spokesperson for AIMS Tony Goodger said: “The support package will help to calm the nerves of some businesses, however, as today’s announcement is for just 6 months and our member’s businesses – as well as the businesses they supply – are energy intensive users, it is essential for their business planning that the government provides further details as to what will happen to energy bills from 1st April 2023 as soon as they are able to.

“The government is wanting to see the economy grow quickly and our members cannot be left in a position whereby announcements of support are left until the 11th hour if they too are to plan for growth.”

Keeping energy bills down

Prime Minister Liz Truss said: “I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

“At the same time, we are boosting Britain’s homegrown energy supply, so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”

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