Government reduces energy bill support

The UK Government has announced it will reduce energy bill support for businesses due to spiralling costs. Current predictions have meant the print and display industry has braced itself for negative impacts that will see potential changes in running costs and prices.

The new Energy Bills Discount Scheme has been announced to help businesses, charities, and the public sector before the current scheme ends in March.

Businesses that have been receiving support under the previous scheme will not have to take any action as discounts will automatically be applied to bills, however, the new rates of support are lower than before.

As wholesale gas prices have fallen the Government believes the new scheme strikes a balance between supporting businesses and limiting taxpayers’ exposure to volatile energy markets.

Chancellor of the Exchequer, Jeremy Hunt, says: “My top priority is tackling the rising cost of living, something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and businesses as we are able.”

Hunt adds: “Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is needed to make sure the market is working for businesses.”

Larger discounts and support have also been announced for heavy energy-using sectors like glass, ceramics, and steelmakers.

The British Printing Industries Federation (BPIF) has stated the majority of the printing industry has not been assessed as an energy and trade-intensive industry but has highlighted sectors that fall into the category such as paper stationery, paper and paperboard, plastic products, and workwear.

Chief executive officer of the BPIF, Charles Jarrold, comments: “We’ve pushed hard on behalf of the industry to see support remain beyond March. It’s encouraging it will be in place for a further year but it’s disappointing the levels have been reduced.

“The industry is still under intense pressure and we’re looking forward to hearing from members about the impact of the reduction in support and feeding this back to Government.”

The new discount scheme applies a discount if wholesale prices are above a certain threshold, calculating a discount based on the difference between the wholesale price with an energy contract and the price threshold.

The BPIF has met with Government to get more details on support while also referring businesses to its energy help page, which includes information on finding the best deals and understanding your energy use. Support can be found at: https://bit.ly/2MKpLVy or https://bit.ly/3Gs8MkC

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