Copy article

End of energy cap scheme

ended 09. January 2023

This afternoon, the Chancellor Jeremy Hunt is widely expected to confirm the end of the energy cap scheme for businesses at the end of March and announce a new scheme that offers a discount on wholesale gas and electricity prices (which is expected to run until the end of March 2024). If your business will be affected by this (perhaps you run an energy-intensive shop, bar, restaurant or micro manufacturer, e.g. brewer, food, glass, jewellery or ceramics), please answer the following questions:

  • What do you think of the new proposed ‘discount’ scheme? Will it make things worse for you?
  • Does a discount on wholesale prices, which could leap anytime, provide you with the certainty you need?
  • Is your business or charity being impacted by soaring energy costs? If so, how?

Lots of journalists will be covering this and many have already asked us for case studies so please ensure there are pics of you in your media packs.

3 responses from the Newspage community

Copy all

Star Quote
Copy

Mark Grant
Business Finance Adviser at The Business Finance Branch
For many businesses, the removal of the energy price cap will spell the end of the road. For those that are able to survive it, it will introduce a phenomenal amount of financial uncertainty and hamper any financial planning if the replacement scheme is tied to wholesale prices. Investment and recruitment will be affected for those with expansion or growth plans as they cannot forecast their outgoings. Whether it's energy bills, VAT bills, payroll or general overheads, there is so much mis-timing of cashflow in SMEs currently and even those 'doing well' can run short of cash for short periods. 75% of conversations with clients currently are to help with working capital and keep cash flowing. Monday's announcement will only make things worse. This is yet another hammer blow for UK businesses when they are already down.
Copy

Editor
Mary Maguire
Managing Director at Astute Recruitment Ltd
The proposed end to the energy cap scheme will impact many clients. Several brilliant local charities including the YHA, Derby City Mission and Me & Dee, all work to help local communities in Derbyshire. With fixed costs and no way of cutting them, these wonderful charities and so many more will be deeply and cruelly impacted, as will all the people they work to support. To help these charities and all affected businesses it would be better to have a fixed price for energy for a fixed time. The Government could call it the ‘Triple-Fix’ supporting businesses, charities and people. Without this support, many organisations will be like wind turbines with no wind, generating nothing.
Copy

Austyn Johnson
Founder at Mortgages For Actors
The new discount scheme just doesn't offer the certainty organisations need. It will also likely mean that prices will rise to make up for the discount. The certainty needed by charities and businesses alike comes through fixed rates, which enables them to budget. Having a short-term discount scheme in place will only mean more uncertainty in the economy and less confidence to invest. We work from home, so the only thing that affects us is the extra light or heating bill, but this is still cheaper than commuting, at the moment at least.