Brewers and cheesemakers to qualify for extra energy support
Brewers, wine producers and food manufacturers and processors are among the businesses which will qualify for a higher level of energy bill support under the government's new scheme.
Companies that are classed as "energy and trade intensive" will be able to apply for extra help with their bills.
An official government list includes those involved in manufacturing "fresh pastry goods and cakes", "processing and preserving meat" and "dairies and cheese making", among others.
The £5.5b Energy Bills Discount Scheme will run from 1 April 2023 to 31 March 2024 and replace the existing £18b Energy Bills Relief Scheme with a lower level of support.
It will offer a discount on wholesale energy prices rather than a fixed price.
Businesses classed as higher energy users will be able to apply for a maximum discount on electricity of £89 per mw/h with a price threshold of £185 per mw/h and a discount of £40 per mw/h with a price threshold of £99 per mw/h for gas.
Other businesses will be eligible for a maximum discount on electricity of £19.61 per mw/h with a price threshold of £302 per mw/h and a maximum discount on gas of £6.97 per mw/h with a price threshold of £107 per mw/h for gas.
Full details on eligibility and the application process have not yet been published.
Nik Antona, chairman of the Campaign for Real Ale, said it was "great news" the government had listened to producers but raised concerns hospitality businesses would not receive the added help.
"Unfortunately, pubs and social clubs will not qualify for extra support despite being vital community facilities, with many advertising their services as ‘warm hubs' for those struggling with domestic energy costs," said Antona.
"We want the Chancellor to revisit this decision in the Spring Budget, although this will sadly be too late for many licensees who have already taken the heart-breaking decision to close their doors due to the cost-of-business crisis."
Other hospitality trade bodies have warned the cut in support is "unsustainable" and will be the "last straw" for some businesses.
Image: Vaillery / Shutterstock
