Energy-intensive businesses to receive additional support
UK SMEs which run energy intensive businesses such as the food and drinks industry, the manufacturing industry and pharmaceuticals are being offered additional support with energy bills.
Could you be eligible for extra support with your business energy bills?
As announced by the Government in January, all businesses will be eligible for support with their energy bills.
However, if you are classed as an energy intensive industry, you will be able to receive extra support and bigger discounts.
If your energy costs are below £107/MWh for gas and £302/MWh for electricity, you will be unable to access this additional support.
If you are eligible, you will receive a discount on 70 per cent of your energy volume and your bills will be capped at £40/MWh for gas and £89.1/MWh for electricity.
The support for all businesses will come into effect on the 1 April 2023 until 31 March 2024.
Why has the support changed?
The previous scheme for businesses to support with energy bills was seen as a short-term solution but was ‘unsustainably expensive’.
Energy prices have now fallen by 40 per cent so while they are still higher than average, the Government decided the support given could be amended to take that into account.
Prices are also expected to fall even further between July and September so there is hope that bills will stabilise and this support will take the pressure off as this price drop continues.
How can you receive more support?
If you believe your business will require more support, we can offer guidance during this time on adapting your business plan, applying for relevant funding and maintaining your cash flow during the economic downturn.
Get in touch for affordable accounting and tax support for your business.