During the recent Autumn Statement, new chancellor Jeremy Hunt outlined what support would be available to households and businesses struggling with rising energy bills after April 2023.

Hunt announced that targeted support will remain in place for the most vulnerable, but that bills are expected to rise further next year.

Speaking during the Budget, Hunt said: “The support we are providing between now and April next year will not change.

“But beyond next April, the Prime Minister and I have agreed it would not be responsible to continue exposing the public finances to unlimited volatility in international gas prices.

“So I am announcing today a Treasury-led review into how we support energy bills beyond April next year.”

What support is currently available for businesses?

The Energy Price Guarantee was announced by the government in September to reduce the impact of rising energy prices for both households and businesses and was due to be in place for two years. However, the government recently announced that the scheme will only continue in its current form until April 2023.

Average household bills are estimated to be no more than £2,500 under the Guarantee, which caps the price per unit of gas or electricity.

On the 21st of September, the government extended the support to non-domestic energy customers such as businesses, SME, charities and public sector organisations cut. The Energy Bill Relief Scheme (EBRS) will offer discounts for all firms for six months from 1st October 2022.

The scheme applies 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 31st March 2023. 

What will happen to energy bills after April 2023?

Jeremy Hunt has announced that Energy Price Guarantee will continue to provide support from April 2023 but that the cap will rise to £3,000 and the £400 energy bill support for all households will end. 

However, with prices forecast to remain elevated throughout next year, Hunt says this still equates to an average of £500 support for households in 2023-24.

In addition, support will remain in place for the most vulnerable. The government has announced a package of targeted support worth £26 billion, which includes continued support for rising energy bills. More than eight million households on means-tested benefits will receive a cost-of-living payment of £900 in instalments, with £300 to pensioners and £150 for people on disability benefits.

In addition, the government will double to £200 the level of support for households that use alternative fuels, such as heating oil, liquefied petroleum gas (LPG), coal or biomass.

£1 billion will also be provided to enable the extension of the Household Support Fund in England over 2023-24. The Fund is administered by local authorities who will deliver support to households to help with the cost of essentials. It will be for the devolved administrations to decide how to allocate the additional funding.

Alongside direct support, the government is setting a national ambition to reduce energy consumption by 15% by 2030, delivered through public and private investment, and a range of cost-free and low-cost steps to reduce energy demand.

Will there be equivalent support for businesses to help with energy bills?

Jeremy Hunt confirmed that before the end of the year the government will allow new targeted support for businesses from next April. As the previous Energy Price Guarantee for households was matched for businesses, the support is likely to be less generous and for those who are the most vulnerable to rising prices.

Hunt previously confirmed that any support for businesses “will be targeted to those most affected” and that the new approach will better incentivise energy efficiency.

What measures can businesses take to keep their energy bills as low as possible in 2023?

Our previous blog outlined a series of support schemes on offer for small businesses struggling to save their energy bills, as well as tips to reduce energy outgoings.

A range of business finance schemes and grants, as well as government and regional schemes, are available to help SMEs combat rising energy prices.

In addition, your commercial energy provider may be able to offer a business grant to help you improve your business energy efficiency. These could include subsidies on the upfront costs for more energy-efficient equipment.

Having a smart meter installed can save businesses around 10% on their annual fuel bills and improving the efficiency of heating systems, insulation, and even switching to energy-saving lightbulbs can make a big difference.

How can Enexus help businesses combat rising energy prices?

Enexus Energy develops bespoke, innovative strategies to optimise the way your business purchases, generates and consumes energy.

We can help you take proactive measures for your 2023 business energy contracts. We can track the market on your behalf, source the very best prices and suggest alternative contract structures to ensure you buy energy in the most cost-effective way. We can also help you reduce consumption and guide you to lasting savings on your energy costs. 

To see how we can help, please get in touch:

Email: info@enexusenergy.co.uk

Tel: 01253 966 960