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Government announces energy bills support for businesses


Beyond the headlines of the government’s recent announcement outlining a package of support on energy bills for businesses, the detail is currently quite sparse.

Here we update you on the available information we have so far.


Key measures announced 

Business will have a new six-month scheme from 1st October offering “equivalent support” to the domestic price cap that is being implemented. The actual p/kWh rate that this scheme will cap prices at is yet to be published and will only be applied to bills for the upcoming winter period.

The scheme will be reviewed in three months’ time to determine if the help provided should be more targeted towards certain industries.

At the end of the six-month period in March 2023, additional support will be provided for “vulnerable industries” although again we have yet to be told what this support will look like and what the criteria will be to judge which businesses will benefit. A government spokesperson has described vulnerable industries as likely to include hospitality such as pubs, but again has not provided any more details.

Green levies and VAT

  • Green levies are to be temporarily removed from domestic bills (to be paid for by the taxpayer) but no indication that they will be removed from business bills as yet.
  • There was no mention either of any reduction in VAT on business energy bills but we may hear more at the new Chancellor’s mini budget scheduled for next week.
  • Government has also announced £40bn of funds to help energy suppliers deal with market volatility and the impact on their cash flow given the sharp increase in the amount of money they need to post as collateral for hedging future generation.

What does it mean for your business?

It is likely that this announcement has sparked as many questions as answers for your organisation, given the wide range of energy purchasing arrangements that are in place for individual businesses.

We are still awaiting a significant amount of detail on the practicalities of the measures. We will be providing regular updates as more information is made available but don’t hesitate to get in touch if you have immediate queries at



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