One of the country’s leading energy bodies has called for the Government to work with industry and financial institutions,, and bring in a deficit tariff scheme to keep bills down this winter.
Energy UK has written to the Chancellor Nadhim Zahawi, outlining its proposals.
It believes that Government-backed loans to bridge the difference between today’s energy prices and expected hikes over the coming months.
The energy body suggests that bills could be eased throughout 2023, with costs instead spread over a longer 10-15 year period.
Businesses are not sheltered from rising wholesale costs by a price cap, and instead agree long-term contracts with suppliers, which have spiked sharply in line with soaring gas prices.
Clean energy specialist Squeaky has estimated industry energy bills will climb to an eye-watering £50bn in 2023, more than doubling this year’s total.
Energy UK has also urged the Government to set up an expert energy panel to look at ways of keeping bills affordable for both domestic and non-domestic customers over the longer-term.
While the Government unveiled a £15bn Energy Bills Support Scheme back in May, offering households a £400 discount, this was based on energy bills rising to the comparatively lower £2,800 per year this winter.
- 500,000 UK SME’s ‘at risk of going bust within weeks’
- Ofgem threatened with legal action if it doesn’t protect customers from soaring energy bills
- UK expands gas emergency exercise ahead of winter
- Sunak races to finalise cost of living response after energy bills warning
- UK Inflation to Rise Past 18% in Gas Crisis, Citigroup Says