Government announces plans to help public sector with energy costs

The government has announced plans to help households, businesses and public sector organisations with energy costs.

The Energy Bill Relief Scheme aims to reduce wholesale energy costs by working with suppliers.

Through the scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers. This includes all UK businesses, charities and the public sector, including schools and hospitals.

The scheme will apply to fixed contracts agreed on or after 1 April 2022, and to deemed, variable and flexible tariffs and contracts and will apply to energy usage from 1 October 2022 to 31 March 2023.

Customers do not need to take any action, the discount will automatically be applied to bills.

The discount will vary for each customer depending on contract type and circumstances.

Prime Minister Liz Truss said: "I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

"As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

"At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all."

Chancellor Kwasi Kwarteng said: "We have stepped in to stop businesses collapsing, protect jobs, and limit inflation.

"And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers."

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