Trade bodies demand ‘urgent clarity’ on energy bill support

Retail trade bodies have called on the government to clarify which businesses will receive support after March 2023, expressing disappointment over the delay on this important decision.

The Association of Convenience Stores (ACS) has urged retailers to write to their MP highlighting the serious impact of rising energy costs on their businesses.

The government has confirmed that the long-awaited announcement on the Energy Bill Relief Scheme (EBRS) will be delayed until the New Year.

Businesses who renewed their contracts at any point after 1st December 2021 have been eligible for support through the government’s Energy Bill Relief Scheme. The support provided to business comes in the form of a wholesale price set at 21.1p per kWh for electricity, and 7.5p per kWh for gas. This is the supported wholesale price, which makes up part of the overall kWh rate that a business pays, and is currently due to expire at the end of March 2023.

James Cartlidge, Exchequer Secretary said: “The energy bill relief scheme is very generous, but it is expensive, and we need to ensure longer-term affordability and value for money for the taxpayer. That is why we are carrying out a review of the scheme, with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023.

“We will announce the outcome of the review in the new year to ensure that businesses have sufficient certainty about future support before the scheme ends in March 2023.”

ACS has called on the government to ensure that convenience stores are included in the list of essential vulnerable businesses that will receive additional help with their energy bills from April 2023.

“Rising energy costs are the single biggest concern for convenience retailers at the moment and without additional support on energy from next April, thousands of stores will be forced to make difficult decisions and many of these businesses will be at risk of closure,” James Lowman, ACS chief executive, said.

“We’re calling on retailers to write to their MP to outline their concerns and highlight the detrimental impact that rising energy costs will have on their businesses. We need the Government to take decisive action and provide urgent clarity on the support that businesses will receive beyond March 2023.”

The British Independent Retailers Association (BIRA) has said it's "disappointed" that such an important decision on energy support for businesses has been delayed by ministers.

The association has said no clear decisions will cause even more unnecessary stress on retailers.

In October, ministers had promised to make an announcement before the end of 2022, but this is now delayed until the start of 2023.

Andrew Goodacre, BIRA chief executive, said: "It is disappointing to see this important decision being delayed. Independent retailers have seen energy prices increase by as much as 600 per cent in the past year and this current support package needs to be extended beyond March 2023.

"This is even more important as retailers are facing the double whammy of rapidly increasing costs and lower consumer expenditure due to the cost of living crisis. In order to plan ahead for next year, the high street businesses need to know the support that will be made available."