Energy Bill Relief Scheme - Business Premises

Jaycbee

Anyone else surprised to find out the Energy 'Cap' for Elec and Gas for businesses is not a 'cap' at all?   Energy companies can literally charge what they want and apply a discount (which has a max that can be applied).  So from October 1st our Elec goes up from 40.5p KWH to 120p KWH - getting a 39p reduction via the EBRS and therefore paying 81p KWH (didn't I read somewhere the 'cap' was 21p?) - double what I was paying in September and as not fixed can go up again at any time.   So the company are adding a whopping £1.00 a KWH on top of the 'cap' they are paying for that electricity when I read the Gov small print.   Why call it a 'cap' if it isn't.     

Chrysalis

It sounds like its working the same as the domestic subsidy for non SVR tariffs, since businesses customers dont have a ofgem cap right? meaning the subsidy is just on whatever they charge.

[Deleted User]

Isn't the business relief scheme a cap on the wholesale component of the energy purchased for the contract?  I admit, I've not looked into it very much, but what I have seen was clear that it wasn't a cap on price.

Jaycbee

• "businesses are given a discount based on a "government supported price" of 21.1p per kWh for electricity and 7.5p per KWh for gas."    My supplier turned that into 120p KWh (up from 40.5p the day before) reduced to 81p - so basically charge whatever you want Mr Supplier.  The Government statement even goes on to say 'this is less than half the wholesale prices expected this winter'.  So if 21.1p is half expected how come I get charged 120p KWh?    It wasnt clear at all.   All suppliers doing something different and charging what they want.   Thats fine just dont quote figures per KWh that dont actually mean anything to the business who is paying.        

ToomanyPies

Did you get to the bottom of this? I'm looking at a similar situation with XLN who have set a variable business rate currently at 69p and apparently applied a discount to bring it down to 55p. There is no information on the invoice stating what discount has been provided and I only found out by phoning them but I don't have any faith in the explanation.