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  • First Choice Utilities

UPDATE - Business Energy Bill Relief Scheme

The UK Government have announced the introduction of well-needed support for businesses affected by rising energy costs as a result of volatility in the wholesale market due to economic and political tensions.

Earlier this year, many suppliers exited the market as a result of soaring wholesale energy prices. Delivered rates exceeded as much as £1/kWh for electricity and 25p/kWh for gas, however this scheme has opened the door for many to re-enter the market for renewal and acquisition business as early as Monday 26th September, ready for the start of the scheme.

A cap on wholesale prices of £211/MWh for electricity and £75/MWh for gas will be applied to contracts signed on of after 1 April 2022, effective from 1 October 2022, and will last for 6 months.

These wholesale caps equate to 21.1p/kWh for electricity and 7.5p/kWh for gas, however are not inclusive of none commodity costs for the delivery of energy to the customer, which can make up around 40% of the end unit price, depending on individual customer circumstances such as location and energy behaviours.

All customers who entered a contract on or after 1 April 2022, will automatically receive the reduction and do not need to do anything.

Businesses on variable tariffs will receive a maximum cap of £405/MWh, (40.5p/MWh), for electricity and £115/MWh (11.5p/kWh), for gas.

Relief will also be given in the form of exemption of green levies, which will be removed as part of the scheme, although it has not yet been made clear if this relates solely to the CCL element of a customers bill, which is charged at a rate of 0.775p/kWh for electricity and 0.568p/kWh for gas in addition the fixed unit costs, or whether Renewable Obligation will also be removed, which is typically calculated and included in fixed electricity unit rates and is currently around 2.59p/kWh.

Due to the uncertainty surrounding the calculation of none-commodity costs, it is yet unclear as to what the deliverable energy rates on offer will be, however we will know more early next week as suppliers publish their rates which factor distribution network charges and government taxes and levies etc.

Customers who are out of contract or have contracts due to end are encouraged to enter a contract to receive the maximum reduction on offer.

Switching suppliers does not affect the entitlement of discounts and is still permitted under the scheme.

We will continue to support our customers during these difficult times, offering as much advice and support as possible, and will be notifying our customers of announcements re: the 3-month review and potential extension of the scheme as soon as new information becomes available.

If you are struggling to pay your bills, have a contract due to end, are out of contract or have questions relating to the scheme, please send an email to with the heading "Business energy support" and one of our representatives will contact you as soon as possible.

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