Guidance for businesses on variable/flexible energy contracts

The Government have confirmed the Energy Bill Relief Scheme to help businesses tackle the rise in energy costs from 1st October 2022. However, those not on Fixed Contracts are unlikely to receive the maximum benefit of the scheme.

If your business is on a variable/flexible contract, the discount will reflect the difference between the Government supported price and the relevant wholesale price but be subject to a ‘maximum discount’ of £345/MWh for electricity, £91/MWh for gas.

The Government expects wholesale costs for this winter to be around £600 per MWh for electricity or £180 per MWh for gas.

If you are on this type of contract, you can talk to your supplier about moving to a fixed contract if you don’t want to be exposed to this price variation.

Direct Business Solutions specialise in sourcing Fixed Term Energy Contracts for SME businesses and can assist NHBF Members in receiving the maximum benefit. See the Member benefits section on NHBF.co.uk for further details.