Thank you for contacting me about commercial energy prices, especially for Post Office branches.
As I'm sure you are aware, current inflation is being driven by rising energy costs, provoked by a post-pandemic surge in demand as well as Russia’s invasion of Ukraine.
The Government recognises the impact rising energy prices have on businesses of all sizes. Ofgem, the independent energy market regulator, and the Government are in regular contact with business groups and suppliers to understand the challenges and provide support. Our priority is that costs are managed and supplies maintained.
Through the Energy Bill Relief Scheme, the Government is providing a discount on wholesale gas and electricity prices for all non-domestic customers whose current bills have been significantly inflated in light of global energy prices. This includes all UK businesses and the voluntary and the public sector such as charities, schools and hospitals. Equivalent to the Energy Price Guarantee put in place for households, under the scheme the Government sets a Supported Wholesale Price which is a discounted price per unit of gas and electricity. It is expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter.
It applies to fixed contracts agreed on or after 1 December 2021 as well as to deemed, variable and flexible tariffs and contracts. It applies to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings were first seen in October bills, received in November.
Early next year, the Government will forward proposals to support energy bills beyond April 2023. I know that the Government will focus support where it is needed most for energy-intensive industries, small businesses, and the hospitality sector.