UK firms have been informed that they will receive energy bills support from October 1, although it may need to be backdated.
A spokesperson for the government said that further details of the energy bills support scheme for businesses will be announced next week, which will “support businesses with October energy bills, including through backdating if necessary.”
Prime minister Liz Truss said last week that businesses could expect “equivalent support” to that being given to households, although it is uncertain as to how much financial help that will amount to.
However, the comment over backdating the support scheme has led to speculation that it may not be up and running until November due to the complexities around it.
Unlike households, businesses do not fall under the government’s new £2,500 annual cap and are bound by different contracts depending on the blend of energy they use, and the quantity consumed.
Businesses tend to enter one or two-year fixed contracts with energy suppliers, although around a third of these are usually up for renewal before winter or in October, according to the Confederation of British Industry [CBI].
Furthermore, it has already been announced that businesses would be entitled to support for a period of six months, while “vulnerable businesses” could have the option to extend. Detail is yet to be provided on how this will practically be applied.
The Federation of Small Business’ Alan Soady argued that all firms could be considered vulnerable if they are “energy users”.
“Let’s face it, the problems in the gas market don't look they are going away in six months,” Soady added.
Photo by Anthony Indraus on Unsplash
