The government has set a Supported Wholesale Price for the winter period ahead, which starts from 1st October (2022) and runs through to the 31st of March next year (2023)
- The Support Wholesale price for electricity is £211/MWh (21.1p/kWh)
- The Support Wholesale Price for gas is £75/MWh (7.5p/kWh)
The Support Wholesale Price will apply to any businesses that entered a fixed price contract on or after the 1st of April 2022 and will apply to energy usage from 1st October 2022 to 31st March 2023. This will not apply to those businesses that entered fixed price contracts prior to 1st April 2022 but we await further clarification for this.
The Support Wholesale Price will also apply to any businesses that entered flexible contracts, again this will apply to energy usage from 1st October 2022 to 31st March 2023. Although unclear, we are assuming that this applies to all flexible contracts, as some businesses may have been purchasing electricity and gas for the Winter 22 period prior to 1st April 2022.
Businesses do not need to act or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.
A maximum discount will be introduced which is likely to be £405/MWh (40.5p/kWh) for electricity and £115/MWh (11.5p/kWh) for gas. This means that any business that purchased Winter 22 at or above £616/MWh for electricity and £190/MWh for gas, will not receive any further discounts above these levels.
There is still some clarification required from the Government and we now await further instruction from suppliers as to how they will implement the support package soon.
The support packages provided by the Government are necessary in this current climate, however here at the Cost Reduction Company we are actively looking to help businesses and organisations look to identify and eliminate energy waste by Using Less Stuff, a longer-term solution that will help you save money, time, and become carbon net zero, a steppingstone to slowing climate change.
If you have any questions regarding this information, then please contact us today.
