As part of the chancellor’s mini-budget next week, the program is rumored to include decreases in the price per kilowatt-hour charged to enterprises.
As part of its attempt to combat skyrocketing rates, the government is reportedly considering imposing a fixed discount for businesses on the amount they are charged per kilowatt hour for electricity.
The Department for Business, Energy, and Industrial Strategy did not deny that the idea was being considered in advance of Friday’s mini-budget announcement.
Chancellor Kwasi Kwarteng will meet with the Bank of England and some energy company executives on Saturday to discuss the government’s already confirmed cost-of-living relief measures.
However, they stated that the meeting was part of a “normal” and “continuing interaction” with both the bank and the energy sector, and they refused to confirm claims of a corporate discount.
Liz Truss unveiled her early measures to combat soaring energy costs last week, describing an energy price guarantee (EPG) to limit bills to £2,500 for two years beginning in October – approximately £500 more than they are currently, but £1,000 less than Ofgem’s upcoming price cap increase.
This would only apply to homes, as businesses are not subject to a cap, and businesses have criticized the new prime minister for failing to elaborate on her offer of similar assistance for six months.
This will be Mr. Kwarteng’s responsibility on Friday when he participates in a “fiscal event” in the House of Commons.
According to the Telegraph, the idea under consideration would not restrict companies’ rates, but rather provide a reduction of a predetermined amount of pence per kilowatt hour compared to what they already pay.
Other initiatives anticipated to be presented next week include the government’s plan to implement the tax cuts promised by Ms. Truss during her leadership campaign, and the possible removal of the cap on bankers’ bonuses, which the chancellor reportedly believes will stimulate economic growth.
