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In September 2022, Liz Truss announced that her party are going to make significant changes to the rise of energy costs, putting in place a price guarantee.
The price guarantee can seem confusing for many – but what does it mean for your business?
Here’s our guide on the price guarantee and how it may affect your business…
What is the Energy Price Guarantee?
The energy price guarantee was put in place due to the rising costs of energy, in an attempt to slow the costs down and ensure that households can manage through winter.
With an estimated price guarantee of £2,500 per annum, it is actually the unit cost of electricity and gas that has been capped, with some homes expected to go over the average £2,500 if they use more energy.
But the main worry for businesses is, will this energy price guarantee apply to businesses?
Will It Apply to Your Business?
The answer is, not in the same way.
The government are putting in place a new six-month scheme for businesses, charities and public sector organisations that will offer them similar or equivalent help to that which is being provided to domestic customers.
After the initial six-months scheme, the government has pledged to review the issue every 3 months to consider where support should be directed and how businesses are holding up.
This scheme is called the Energy Bill Relief Scheme, which you are eligible for if you are a business, voluntary sector organisation or public sector organisation and are on a fixed price contract agreed on or after April 1st 2022, signing a new fixed price contract or on flexible purchase/similar contracts.
The government will provide a discount on your unit prices, which have been set at £211 per MWh for electricity and £75 per MWh for gas, which is considerably less than the previously predicted rates.
For more information on the Energy Bill Relief Scheme, the government’s main page is extremely useful.
How to Manage Your Business's Energy Usage
If you’re running a business, keeping an eye on your energy usage is an extremely important factor so that your expenses aren’t being wasted elsewhere.
From choosing the best gas and electricity tariffs for your company to simple changes that can result in significant savings, here we offer our top tips on how to save money on business energy.
Our top 10 energy-saving tips for businesses can be found here.
How We Can Help
With the struggle of energy prices also heavily affecting businesses, we are here to help you switch to renewable energy and lower your costs in the future.
Our dedicated team at Gaeltel will get to know you and your business and complete a free energy audit to determine the most efficient actions to cut consumption, carbon and costs.
Get in contact with us at info@gaeltel.co.uk for more information.