What the energy bill relief scheme for businesses means for restaurants, pubs, cafes, and bars
through autumn and into winter, the government is introducing a business energy bills plan to alleviate some of the financial strain. Here, now, an explanation of that plan, and what it means for businesses in the U.K,The Energy Bill Relief Scheme, which will run from October 2022 to March 2023, provides price reductions on electricity and gas for non-domestic customers. The government will set a “government supported price” for both electricity and gas.
Meanwhile, a restaurant that uses around 3.5 megawatts per hour of electricity and four megawatts per hour of gas each month that is on a variable contract would receive the currently estimated maximum discount of £405 per megawatt hour for electricity and £115 per megawatt hour for gas. This would reduce a monthly bill by half.No. There will be other costs in the final price of energy for the next six months, owing to network and supplier charges that will vary.
The wording of the review for “vulnerable” businesses will also cause both hope and consternation. It is likely that over winter restaurants — and particularly pubs — will remain at risk, not from bills then, as they will be discounted until spring 2023, but from the bills that may follow that six month period. It would be a great shame if they were kept afloat during the hardest months, only for the purported time of recovery to be what sent them under.
That fixed price protection also doesn’t change the fact that going from a very very high price to a very high price still puts longer term financial pressure on restaurants, pubs, cafes, and bars. The reduction may stave off immediate crisis, but time will tell if it is sufficient.Check your inbox for a welcome email.By submitting your email, you agree to our