Support for households, businesses and public sector organisations facing rising energy bills has been unveiled, but what does this mean for the UK aluminium sector?
In an announcement made today (21st September, 2022) by Business Secretary Jacob Rees-Mogg, a new government Energy Bill Relief Scheme will provide a discount on wholesale gas and electricity prices for all non-domestic customers whose current gas and electricity prices have been significantly inflated considering global energy prices.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial 6-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
To administer support, the government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
Upon the appointment of the new Business Secretary earlier this month, Tom Jones, CEO of ALFED, wrote a letter explaining the seriousness of the situation for the UK aluminium sector and ALFED will continue to work with government to deliver a solution to support its members and the UK industry.
Nadine Bloxsome, Membership & Sustainability Manager says: “There needs to be a clear and long-term plan in place to address the critical position with the cost of energy that is damaging the UK Aluminium Industry and the wider supply chains the sector supports.”
The available discounts are outlined on the government website, however businesses and ALFED members should not need to do anything to obtain benefit from the scheme, as this will be administered automatically by energy suppliers.
Businesses currently on variable tariffs may see extra benefit (over the course of the scheme) from taking up fixed term contracts and government is working with the suppliers to open greater supply or fixed term contracts.
Check eligibility here:
Read the announcement in full here:
https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses
