The Government has recently announced a new energy support scheme, one that reduces the support given to UK businesses.
The new scheme, (The Energy Bills Discount Scheme), will provide UK businesses and other ‘non-domestic energy users’ with discounted energy bills until 31 March 2024.
From 1 April, businesses will receive discounts of 0.7/KWh off their gas bills and 2p/KWh off their electricity bills. ‘Energy intensive’ industries (based on the SIC [Standardised Classification Code] code system) will be entitled to more support – 4p/KWh on gas and 8.9p/KWh for electricity.
The new scheme will replace the existing scheme (The Energy Bills Relief Scheme), which began in October 2022, which instead caps energy costs.
James Cartlidge, the exchequer secretary to the Treasury, said that the Government will provide £5.5bn of “transitional support” for businesses over 12 months from 1 April.
Classification issues
Commenting on the news, Kerrin MacPhie, chief executive, mia, said: “For many, the previous support package offered by government has served as their organisation’s life support amidst a series of events impacting the sector’s performance.
“Current energy costs are simply unsustainable, and for a sector that is already experiencing a decrease in demand, merely passing on these costs to counteract them simply isn’t achievable. This will have a devastating effect on operators, many of whose hard-earnt financial reserves have already been depleted.
She added: “We understand that certain organisations such as historical sites and buildings and similar visitor attractions, who can host business meetings and events, will be eligible for the larger support package.”
“Having been included based on identified SIC codes, it once again shows that organisations in our sector aren’t classified under one standard consistent code.”
