Relief for travel businesses as Govt announces energy price cap

By Linsey McNeill
09/09/2022
Home » Relief for travel businesses as Govt announces energy price cap

New Prime Minister Liz Truss has announced new measures to protect businesses from soaring energy bills over the winter.

She said a price cap, similar to that being introduced for households, will limit the rise in costs for non-domestic users.

However, while the domestic price cap will last for two years – limiting the average household energy bill to £2,500 per annum – the price cap for businesses is for just six months.

After the initial six-month scheme, the Government said it will provide ‘ongoing, focused’ support for ‘vulnerable’ industries.

There will be a review in three months to consider where this support should be targeted, it said in an online statement.

The Government will pay energy suppliers the difference between the price cap and what energy retailers would charge customers if the cap were not in place.

Advantage CEO Julia Lo Bue-Said said businesses were still waiting for more detail from the Government about what specific support it planned to provide to help with energy bills.

The Government has also set up a new Energy Supply Taskforce to negotiate with energy suppliers with the aim of agreeing long-term contracts that will reduce prices and increase the security of its supply.

Other measures being taken by the Government to try to keep energy prices down include issuing new oil and gas licences to increase the supply, ending the moratorium on UK shale gas production, increasing nuclear energy and driving the supply of North Sea oil and gas plus clean energy like wind and solar.

It is also reviewing its target of net zero carbon emissions by 2050, which it said was necessary ‘given the altered economic landscape’.

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