Energy bill support for businesses ends in March 2024
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High energy prices have been affecting both individuals and businesses for the past couple of years. Financial assistance has been provided, including payments for residential energy bills that ended earlier this year and energy bill support for businesses, which will be coming to an end in March 2024. But is there any more planned support for businesses, and what can they do to manage their energy bills next year? Even with the assistance available, many businesses have been forced to raise their prices or even to close due to the high cost of energy. They will need to find new ways to handle their energy bills in 2024 if they hope to survive.
Eligible businesses have had access to a discount on wholesale energy prices since April this year. However, this government scheme will be ending in March, leaving these businesses without access to the price cap on the unit cost of gas and electricity. The Energy Bill Discount Scheme, which replaced the Energy Bill Relief Scheme, will end on March 31st, 2024. It is available to businesses, voluntary sector organisations and public sector organisations on fixed-price energy contracts, signing a new contract, on variable tariffs or on flexible purchase contracts. It’s automatically applied to energy bills.
43% of SMEs are spending between 21% and 60% more on their energy bills this year compared to last year. With inflation remaining high and support coming to an end, what can businesses of all sizes do to stay afloat?
What are businesses doing to save on energy costs?
Businesses can explore multiple ways of reducing their energy bills. Lowering energy usage or finding cheaper energy tariffs can make it easier to manage costs.
Choosing a new energy deal
The first thing businesses can do is to look for a new energy deal with lower costs. If the business’s existing contract is coming or has come to an end, they will be able to switch to a new supplier or a new tariff. The first step could be to contact the existing supplier and see if they are able to offer a better deal. Comparing costs between suppliers is also a smart move, allowing businesses to find lower costs by switching to a different supplier. Comparison websites are useful for this, showing side-by-side comparisons based on current energy usage.
It’s important for business owners to be aware of when their current contract ends. This will enable them to look for a new deal as soon as they can.
Improving business energy efficiency
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Whether a business is able to find a cheaper energy deal or not, they could also take steps towards greater energy efficiency. In some cases, this can involve an initial cost upfront to make improvements, but there are also possible incentives and grants that can help to pay for these changes. Funding to help businesses become greener can help businesses save in the long term. Funding options could help to cover the cost of renewable energy improvements or services from an electrician to install new infrastructure or equipment.
However, many green funding options from the government have recently closed, so seeking the necessary financial help isn’t always easy. But for those businesses that can afford to make improvements, there could be a range of options. Small things such as switching to more energy-efficient lighting or more complicated options such as new renewable energy systems could reduce the cost of energy bills for businesses in different industries and of all sizes.
In addition to making improvements, businesses can make efforts to use less energy in other ways. Changing certain practices and procedures might enable businesses to lower their energy use so that they can save money on their bills.
What businesses can do if they can’t pay their bill
Businesses can come up against the problem of struggling to pay their bills. This has led to some having to close due to no longer being able to keep up with the costs. When faced with a large bill, business owners might find it useful to access certain resources. For example, the Business Debtline charity provides advice to businesses dealing with debt in England, Wales and Scotland. The Office of Gas and Electricity Markets, Ofgem, also has advice for businesses that can’t afford to pay their energy bills. Their tips include agreeing a payment plan with the energy provider, checking for business finance schemes and grants and ensuring the business has a smart meter.
More businesses could soon be struggling with energy costs, but there are options for those who may need help managing their bills.
