The imposition of an upper limit on its wholesale price electricity and gas for businesses, announced the British governmentin an effort to support businesses that are being strangled by the unaffordable cost of energy.
According to the announcement, the cap, which is due to come into force from next month, is set at £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas.
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“We intervened to stop the collapse of businesses, protect jobs and curb inflation,” Finance Minister Kwazi Kwarteng said.
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The cap has been set at less than half the wholesale prices forecast for this winter, the government said.
The scheme will initially apply from 1 October to 31 March 2023 for all non-domestic energy users, including charities and the public sector such as schools and hospitals, as well as businesses.
The government also announced that the support measures will apply to households in Northern Ireland just like the rest of the UK.