How do commercial energy tariffs work?

Sea_Shell

"An energy price cap should be put in place to support small and medium firms from spikes in costs, the British Chambers of Commerce (BCC) has said." 

https://www.bbc.co.uk/news/business-58852612

spot1034

One of the items on today's Moneybox (starting at 06.08)

https://www.bbc.co.uk/sounds/play/m0010fkc

Sea_Shell

Just listened, thanks.

Pub Landlord on there, saying his bill is going to go from c.£600 pm, to almost £2500 pm!!!😲 after his supplier has gone bust and he's been moved to BG.

His standing charge is increasing from 29ppd to £1.49 pd.😲

Day rate 20p to 42p and evening rate 19p to 32p (I assume that's electric pkwh)


They've survived Covid but might not survive this!!

☹️

Sea_Shell

Oh and his VAT is 20%, rather than 5%.

daveyjp

Companies don't pay VAT, customers do, but its another nail in the coffin unless customers are happy with paying more for a pint.

Report this morning was of a business owner quoted 8 times his current contract price for a long term fixed rate.

p00hsticks

daveyjp said:

Companies don't pay VAT, customers do,

My understanding is that companies pay it but (if registered for VAT, which not all companies are) they can reclaim it.....