Cumbria Chamber of Commerce has commented on the government’s new energy bill discount scheme, announced on January 9.

This is ahead of the current scheme ending in March, and the new scheme means all eligible UK businesses and other non-domestic energy users are to receive a discount on high energy bills until March 31, 2024.

From April 1, 2023, to March 31, 2024, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.

This will be subject to a wholesale price threshold, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity.

This means that businesses experiencing energy costs below this level will not receive support.

Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, criticised the scheme: “(The scheme) equates to a significant decrease in the support available to businesses to deal with continuing high energy costs, reducing the financial support envelope by 85 per cent.

“This will put many businesses under additional strain in these widely challenging times and we do risk losing businesses.

“Many businesses have been fighting for their survival for months, and rising energy costs have fast become the tipping point.

“While we welcome the 12-month duration of this package, its value is nowhere near far enough and means that for some firms, energy will now be a cost too far.

“Sectors classified as high energy-using, like glass, ceramics, and steelmakers, will get a larger discount than others, but we have concerns about the list published which appears to exclude some sectors we believe need to be included.

“We’re following up on this through the British Chambers of Commerce and will be engaging with any affected members and their MPs.

“More widely we’re encouraging our business members to come forward with their specific examples and challenges to support lobbying activity nationally.

“This isn’t about giving handouts to and propping up failing businesses, it’s about investing in British businesses that are underlying this success, many of which are confident about the strength of their order books and their opportunities, despite being hammered by eye-watering energy costs.”

Suzanne said there are several options and chambers are urging the government to prioritise an increase in OFGEM’s powers to ensure effective competition in the business energy market.

As well as this, they’re asking the government to bring forward plans for more renewable and sustainable energy production and to launch a national energy-saving campaign.

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