October 1, 2022

The UK GOVERNMENT plans to cap electrical energy prices for companies, however pub payments will nonetheless be 300% greater than normal, a number one commerce physique has warned.

An vitality invoice easing scheme introduced Wednesday calls for presidency intervention to cap electrical energy prices for companies and different non-residential shoppers over the subsequent six months.

READ MORE: Enterprise electrical energy payments to be capped by £25bn intervention

Below the measure, the wholesale worth of electrical energy will probably be capped at £211 per megawatt hour (MWh) for electrical energy and £75 per MWh for fuel – about half the value after the value improve in October.

The Scottish Licensing Commerce Affiliation welcomed the scheme however warned that companies may nonetheless be compelled to shut.

Managing Director Colin Wilkinson stated: “That is the information we have been ready for and clearly we applaud it, however trying previous the headlines it would not stay as much as the hype as this new scheme caps the wholesale worth and pubs and bars can nonetheless pay. payments are 200-300% greater than normal.”

He added: “At the moment, the tariff in pubs and bars is 90p per kWh, in comparison with 15p in regular occasions.

“The federal government says the present wholesale fuel worth is round 42p per unit, so companies ought to see a 21p unit worth drop, however that also means a lot greater payments than earlier than the vitality disaster.

“Nothing within the plan solves the issues of huge deposits and bonds, particularly for the impartial SME sector, and doesn’t restrict the extra margin obtained by vitality suppliers.

“The SLTA is anxious that this will not be the lifeline we had been all hoping for, and at the moment’s announcement is just not sufficient. Extra must be achieved to assist the hospitality sector, which is struggling throughout the winter months.”

Scottish Chambers of Commerce chief govt Liz Cameron welcomed the scheme however stated a six-month ban was not sufficient.

She added: “We’re involved that much more sudden will increase in electrical energy payments await firms after restrictions are lifted.

“We’re calling on the UK authorities to have interaction with the enterprise group instantly to correctly determine the ‘weak industries’ which are eligible for assist after the preliminary six-month ban.”

In the meantime, Scottish Secretary Alistair Jack stated the scheme “will give much-needed reassurance to Scottish companies, colleges, hospitals and different public companies and is being rolled out as a matter of urgency as we method winter.”

He added: “This comes on high of the Prime Minister’s monumental intervention for home shoppers, saving the common residence £1,000 a yr on gas payments, and on high of the £37bn assist bundle introduced earlier this yr. .

“The UK Authorities can also be taking very important steps to strengthen our vitality safety.

“The UK Treasury was in a position to assist folks throughout the nation as we confronted Covid and its power is as soon as once more proving very important as we proceed to grapple with rising prices of residing.”


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