Chancellor exploring plans to keep energy aid for all companies

According to reports in the Financial Times, the move would see the scheme extended past March but will see prices capped at a lower level than that under the existing Energy Bill Relief Scheme. This is a shift from the previously announced aim to switch to targeted aid and is reportedly due to the difficulty in deciding which sectors should continue benefiting and which should not.

In its current form the scheme applies a discount to gas electricity unit rates for the majority of non-domestic energy customers.  

In an appearance earlier this week on Andrew Marr’s LBC show, Hunt said the government would continue to support people with their energy bills, with the precise details for which being announced either just before or just after Christmas.  

As outlined in the Autumn budget last month Hunt said the government would have to target support only at the most vulnerable industries and would likely also have to lower the aid they receive, given the estimated £29bn cost of the current scheme.  

Households, meanwhile, have been told their bills will be capped until April 2024 – although this will be at a higher rate than the current £2,500 annual cost.