British businesses have been warned by government officials that they will have to wait longer than households for financial support with their energy bills amid delays in launching the £150bn scheme, according to reports.
Company bosses are increasingly worried about the prospect of delays to the arrival of support because fixed energy contracts come to an end in October for hundreds of thousands of firms.
Business leaders have been told by government officials in recent meetings that the support scheme for companies may not be ready until November, the Financial Times reported, although it cited officials who hope the package could still be activated next month.
Businesses broadly welcomed the six-month support scheme announced last week by the new prime minister, Liz Truss, but they are still waiting for details on how it would work.
The support being offered to households will freeze energy bills at an average of £2,500 a year for the next two years from 1 October, replacing the existing Ofgem energy price cap.
However, the separate scheme described as offering “equivalent support” to businesses has turned out to be more complicated because they are not covered by the energy price cap. Ministers and officials are reportedly struggling to find a mechanism for setting a limit to businesses’ energy costs.
An emergency budget to set out more detail on energy support and bring in winter tax cuts for millions of people is expected from the government late next week, once the country emerges from national mourning after the death of the Queen.
Truss has been under pressure from her own party to set out her economic plans as soon as possible.
No 10 has previously said legislation would not be needed to bring in the energy support package for households, as it would involve guarantees between the government and private energy suppliers.
However, it is thought that some legislation may be needed to enact support for businesses.
Source: The Guardian