The government has outlined plans to effectively halve the cost of energy bills for non-domestic customers this winter including local authorities.
The Energy Bill Relief Scheme will provide a discount on wholesale gas and electricity prices for all UK businesses, charities and the public sector such as councils, schools and hospitals.
It will apply to energy usage from 1 October 2022 to 31 March 2023 and is based on a discounted wholesale price, which, the government suggested, would be less than half the anticipated prices this winter.
CIPFA chief executive Rob Whiteman described the announcement as a “big relief” and suggested that the cap would provide “some certainty” over the next six months.
But he said the unanswered questions was ‘what happens next?” given the lack of any obvious end to the crisis.
“This price cap expires at the end of the current financial year, making it extremely difficult for public bodies to plan for the next one,” Whiteman said.
“Public bodies, as well as consumers and businesses, need a long-term energy strategy to give them assurance and certainty – and affordable bills. Government must also ensure that any energy strategy doesn’t come at the expense of important net-zero goals.”
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