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UK government to cap energy bills for businesses – Bloomberg
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LONDON (Reuters) – The British government, under newly appointed Prime Minister Liz Truss, plans to cut the wholesale prices that are incorporated into
LONDON (Reuters) – The British government, under newly appointed Prime Minister Liz Truss, plans to cut the wholesale prices that are incorporated into business energy bills this winter, Bloomberg reported on Tuesday.
The report comes ahead of the government’s energy support package for businesses, which is expected this week as the government resumes its duties after a period of national mourning for Queen Elizabeth, who died on September 8.
Earlier reports said that the support package to help businesses facing high energy bills would cost the government roughly 40 billion pounds ($45.4 billion). Truss said in New York on Tuesday that the cost of the energy support would be laid out in more detail. A fiscal event is planned for Friday.
The Bloomberg story, which cited people familiar with the matter, said prices would be capped at about 21.1 pence per kilowatt-hour for electricity and 7.52 pence for gas.
The discounts are set to apply to contracts signed since April 1 this year, and would last for six months starting Oct. 1, according to the report.
The government’s department for business, energy and industrial strategy (BEIS) declined to comment on the report.
($1 = 0.8804 pounds)
(Reporting by Muvija M; Editing by Paul Sandle and Emelia Sithole-Matarise)
Wholesale energy prices refer to the cost of energy sold in bulk to retailers or businesses, which can fluctuate based on market conditions.
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