The UK’s Finance Ministry is about to announce a lower scheme to help businesses with their energy bills, after Chancellor Jeremy Hunt warned that existing spending is “unsustainably expensive”. The new package will be announced to members of Parliament on Monday, as the current ceiling on the unit cost of electricity and gas for companies expires at the end of March.
Sources told us that the replacement will provide a discount on wholesale prices, not a fixed price, with very heavy energy consuming sectors receiving a larger discount than other companies.
Jeremy Hunt has called for a reduction in aid levels, because the current scheme, which costs more than GBP 18 billion, cannot be continued forever. Hunt told company executives last week that the level of support was unsustainable and reiterated that it was always limited to six months.
