Government announces energy support for business

21 September 2022

Gas and electricity costs for UK food and drink businesses are to be capped, the government has announced.

The energy bill relief scheme will see those on fixed-term contracts, agreed on or after 1 April, see wholesale prices for electricity capped at £211 per megawatt hour (MWh) and £75 per MWh for gas.


Businesses on other contracts, including those on variable rates, will come under a maximum discount band likely, to be around £405/MWh for electricity and £115/MWh for gas.

Suppliers are to apply the reduction automatically to all eligible non-domestic customers, with the government compensating suppliers for the cost. 

The scheme will run for six months, from 1 October, with a review after three months to consider whether it should be extended or whether specific sectors require more targeted support.

The Food and Drink Federation CEO Karen Betts said:

“We welcome the scope of the Government’s Energy Relief Scheme and the speed with which it’s being rolled out.  It addresses the largest and most volatile cost pressure facing our industry right now. Although some aspects of the scheme are still to be clarified, it offers relief to food and drink manufacturers across the UK.”