New PM Liz Truss gave an energy announcement as part of her first duties as Prime Minister. During this, she declared that a new energy price cap for businesses will be set from 1st October for six months with extra support being considered for vulnerable business sectors.

What does this mean for your business? 

This is good news for your business, as this means for the next six months your energy supplier will only be able to charge you at the government’s capped prices for your energy bills. This plan has been put in place to help businesses in the immediate future, in hopes to reduce or stop any businesses from having to close their doors.

Energy price cap.

The business department has now announced a “supported wholesale price” of £211 a megawatt hour for electricity and £75 a MWh for gas, which it said would be less than half the wholesale prices anticipated this winter.

The cap means that electricity prices for business customers will still be about double what they were in October 2021, when the price per megawatt hour was £117, but more than half the forecast winter prices of about £540.

The scheme limits the price suppliers can charge customers for units of gas and electricity and not the final amount of energy members use in (£)s. The more energy members use the higher your energy bills will be. 

Members, will not need to take any action, as the discounts will be automatically applied to their bills.

If you have not already done so, here is what members should do:

1. Take a meter reading on or just after 1 October 2022 and send to your energy provider.
2. Make sure you are able to view your invoices online and make changes to your Direct Debits if needed.
3. Understand your monthly / quarterly energy bills.
4. Apply for a business smart meter – this is usually free of charge.
5. Draught-proof windows and doors.
6. Turn off lights when not needed.
7. Reduce your heating by lowering your thermostat.
8. Make sure your appliances are energy efficient (fridges, PCs, boilers etc.).

PharmaPlus will keep members updated what changes are expected after the initial 6 month cap period.

As usual please contact the PharmaPlus office for further information.

Regards,

PharmaPlus