Ofgem, the energy regulator for Great Britain, has announced the energy price cap will increase 5% from January, with the typical annual household bill rising to £1,928 from £1,834. But should businesses be worried about energy prices again?
Despite energy prices going back up, the energy price cap will be considerably lower than in January 2023, where it was £4,059. However, during this time, the Energy Bill Relief Scheme (EBRS), which fixed wholesale gas and electricity prices for businesses, helped shield firms from rising energy prices.
Replaced by the Energy Bills Discount Scheme (EBDS) at the start of April, businesses are now entitled to considerably less support. Funding for the Energy Bill Relief Scheme was around £18bn for the six months from the 1st of October 2022 to the 31st of March 2023, whilst EBDS funding is capped at £5.5bn for 12 months from the 1st of April 2023.