Issue 127
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Businesses to Receive Backdated Energy Support if Scheme is Delayed
The Government has pledged to backdate energy bill support for businesses, following concerns that the promised scheme to help struggling operators, in particular the hospitality sector could be delayed for several weeks.
resulting in unit charges increasing from an average of 15p per KWh over the last few years, to a shocking 90p or more per KWH today. An increase of around 600%.
Small businesses have seen such high energy cost rises over the last few months that the situation is, says the Nighttime Industry Association “unsurvivable” for most without immediate and large scale intervention.
For small but energy intensive businesses such as cafes, pubs, clubs and restaurants who might previously have seen annual energy bills of around £20,000, this complete market failure would result in annual bills of £120,000 or more, which if allowed to continue would put most into immediate insolvency.
Unlike domestic energy users, who have seen unit prices double over the last 12 months to the current price cap of 28p per Kwh, businesses do not benefit from the energy price cap and so are fully exposed to unlimited rising energy costs,
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