As the summer of 2022 draws to a close and the nights begin to arrive sooner, UK businesses are breathing a collective sigh of relief. That’s because, finally, the government – under newly appointed Prime Minister Liz Truss – has announced plans to step in and assist companies with their energy bills.

For our readership in EU member states, a roll of the eyes might be justified. After all, the European Union has outlined and updated its strategy for dealing with the price increases ever since the first Russian tanks rolled into Ukraine back in February – and even before that when supplies were low, and demand was high following the end of lockdowns.

As part of the EU’s strategy, they have:

  • Set a target for member states to cut their overall electricity usage by 10% and peak usage by 5% until March 2023.
  • Set a target for member states to cut their gas demand by 15%.
  • Introduced a windfall tax on energy companies.

But the point is that UK businesses have been waiting. And waiting. And waiting some more.

During their wait, some predicted a 424% rise in their gas bills and a 349% rise in electricity costs compared with those seen in February 2021. In short, many predicted that they wouldn’t be trading this time next year as a result.

So, the UK and Northern Ireland’s Energy Bill Relief Scheme will fix gas and electricity prices for all firms for six months from 1st October. Hospitals, schools, charities and other settings such as community halls and churches will also get help.

It comes after the government announced a £150bn plan to help households with their soaring bills for two years.

In a statement, Prime Minister Liz Truss said:

“I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

At the same time, we are boosting Britain’s homegrown energy supply, so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”

As the financial aid package is tied to wholesale prices, the government hasn’t attached a specific price tag to it. Time will tell whether government action will provide a helping hand or a stay of execution.

One thing, however, is certain: winter won’t feel quite so cold for UK businesses.