Energy bill relief for businesses announced

Business Secretary Jacob Rees-Mogg has outlined the Government's plans to cut energy bills for businesses.

Under the new energy bill relief scheme, wholesale prices will be cut in an effort to protect non-domestic energy customers from soaring energy costs.

Wholesale prices for businesses, charities and public sector organisations will be fixed at £211 per MWh for electricity and £75 per MWh for gas.

This cap will see businesses' energy bills cut by almost half the expected level this winter, with the government making up the difference in price to energy suppliers.

The relief will span from 1 October 2022 to 31 March 2023, and further aid will be given to vulnerable industries after the six-month period.

Support will be automatically applied to bills, so businesses do not need to take any action to benefit from the scheme.

Details on support for households were outlined earlier this year, with the average household's energy bills capped at £2,500 for two years from 1 October.

Chancellor Kwasi Kwarteng said:

"The price of inaction would have been far greater than the cost of this intervention. Not only can we provide urgent support now, but the beauty of our scheme is that it will also bring down inflation, helping tackle wider cost of living pressures."

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