Chamber Comments on Energy Announcement

08 Sep 2022

Published in: Black Country Chamber of Commerce News

---

Prime minister announces energy price guarantee

---

Earlier today the Prime Minister announced a range of measures to help individuals and businesses respond to the impact of escalating energy through a plan expected to cost billions of pounds funded, initially, by government borrowing.

The main measures announced include:

• From the start of October, the Energy Price Guarantee (EPG) will see typical households pay no more than £2.5k a year for gas and energy bills – anticipated to save the average household £1k. This is in addition to the £400 Energy Bill Support Scheme announced earlier in the year.

• People not using mains energy will receive equivalent from a government created fund.

• A new six-month scheme for businesses is set provide equivalent support to that offered to consumers which will be reviewed every three months.

• More focused support will follow that six-month period targeted to support vulnerable industries and sectors.

• A new scheme worth £40bn will be created enabling energy companies to purchase long-term energy contracts

• The ban on fracking will be lifted and a new licensing round for North Sea gas is expected to issue more than 100 new licenses.

• Two additional reviews will explore energy regulation and how the government can reach net zero “in a way that is pro-business and pro-growth.”

The government anticipates that the package will reduce inflation by up to 5% from where it would have been otherwise and aims to make the UK a net energy exporter by 2040 and improve long-term energy security.

Neil Anderson, Director of External Affairs at the Chamber said: “Any support to help individuals, families and businesses will be welcome against this backdrop of increasing costs and financial pressures.

“From a business perspective, the Black Country Chamber of Commerce welcomes this positive and quick intervention from Government at a time when increasing costs and financial pressures are a worry for individuals and business. The breath of the offer to all non-domestic energy users with businesses, charities and public sector organisations included in the announcement will be a relief to many.

“The price cap measures have been something we have called for and it will provide businesses with a degree of financial certainty for the next six months.

“However, it is crucial that future reviews plan for its end and we must not abandon net zero targets and take action to ensure businesses have confidence in the integrity of power supplies and price stability on-going.”