In an update of their guidance over protecting businesses against soaring energy bills, the Government has announced further support in the form of the energy bill relief scheme for businesses.

The scheme when initially announced was only going to apply to fixed contracts agreed on or after 1st April. However, the expansion of the relief revealed this morning will now stretch back to cover contracts that were signed as far back as December 2021. This means that many businesses who previously had been excluded, can now gain from the relief on offer.

When wholesale energy prices jumped considerably in February, a lot of businesses opted to take out fixed-term contracts that locked them into expensive deals for fear of ever-increasing prices reaching way beyond their means – it was a case of stick or twist for a lot.

The energy bill relief scheme extension to cover these contracts is welcome news to the sector and will provide certain relief for many businesses, although there still remains concern as to what cover or help will be available to afflicted businesses when the scheme is due to finish in March 2023.

Some are worried that at that point businesses who have benefitted from this much-needed protection may face untenable positions with drastic rises in their energy bills.

Commenting on the scheme extension, The Department of Business, Energy and Industrial Strategy have stated how it “will help those businesses who have seen increased bills for a sustained period”.

You can read the Government’s press release for the energy bill relief scheme here. You can read the energy bill relief scheme update in full here. To keep up to date with industry news click here.