A decision on expanding aid to companies facing rising energy bills will not be made until the new year, the Treasury Department said.
The government had promised to make an announcement by the end of 2022 and business groups reacted angrily to the postponement.
Currently, wholesale gas and electricity prices for companies are set from October to March 2023.
That was in response to rising bills that put some at risk of going broke.
Unlike households, commercial businesses are not subject to an energy price cap during normal times, which limits the amount that utilities can charge per unit of energy.
The government had said it would review the Energy Bill Relief Scheme and publish those results by the end of this year to explore options to expand support for “companies at risk”.
However, the Treasury Department said on Monday that the decision would not be announced until early 2023.
“We are protecting businesses from high energy costs caused by Putin’s invasion of Ukraine this winter through the £18 billion six-month energy bill relief scheme,” a Treasury spokesman said.
- Companies’ energy costs are to be halved this winter
“However, this is very expensive and we need to ensure longer-term affordability and value for taxpayers.
“Therefore, we are currently undertaking a review with the aim of reducing public finance exposure to volatile international energy prices from April 2023 onwards. We will announce the outcome of this review in the new year to ensure the companies have adequate future-proofing support before the current program ends in March 2023.”
Business groups have urged the government to give companies reassurances about energy support.
On Monday, the British Chambers of Commerce (BCC) urged the government to make an announcement before Christmas, saying many of its members would struggle to pay their energy bills when the scheme expires.
“Just over a month ago, the chancellor promised companies that they would receive a plan for the future of the energy subsidy package before the end of this year. With 24 hours to go before the Bundestag session, companies have one simple question: ‘Where is that? planning?’” said Shevaun Haviland, its general manager.
“Companies are now facing an anxious and uncertain holiday season and are unable to plan for the new year.
UK Hospitality chief Kate Nicholls said the postponement was “disappointing news”.
“It is disappointing that the government has also postponed the announcement of future energy support to the new year and not before Christmas as previously announced.
Add Comment