Priva’s summary of UK Government’s support for business energy users

UK government support for business energy users

The UK’s new Prime Minister Liz Truss has confirmed her plans to support people and businesses with their energy bills. As businesses have not benefited from an energy price cap and are not always able to fix their energy price through fixed deals, many firms are reporting projected increases in energy costs of more than 500%.

Although domestic energy challenges appeared to be her focus, the Government has also put in place a set of mechanisms to support the UK’s millions of business energy users.

The key points of the Government’s plan for business energy users include:

A new six-month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) – This will offer equivalent support as is being provided for consumers. This will protect them from soaring energy costs and provide them with the certainty they need to plan their business. Under this, the state will pay energy suppliers the difference between the new cap and what energy retailers would otherwise charge their customers.

The package of measures is estimated at £150bn but its final cost will depend on movements in the gas market. The Government insists that the scheme will bring down inflation and save billions on gilt debt payments.

Focused plan for vulnerable industries – After six months, the government will switch from the business scheme to a more focused plan for vulnerable industries.

Energy export ambitions – The Government says it is taking action to accelerate to increase our energy resilience and achieve our ambition to make the UK an energy exporter by 2040:

Fracking & Oil – Go-ahead has been given to fracking and more North Sea licences will be given to accelerate production of domestic energy.

Drive on renewables – Accelerate new sources of energy supply from North Sea oil and gas to clean energy like nuclear, wind and solar.

Launch a review to ensure we are meeting our Net Zero 2050 target in an economically-efficient way – Given the altered economic landscape, this review will report by the end of this year – and will be tasked with ensuring delivery of the target is not placing undue burdens on businesses or consumers.


For more information about the many ways in which Priva Building Automation can support energy resilience and energy reduction challenges, why not talk to us face-to-face at the Smart Buildings Show at London’s ExCel Centre (October 12-13th 2022).

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