On behalf of Elli Nikolaou, the National Category Lead for FM & Construction, please see the announcement below relating to the Energy Prices Act:
Please kindly be advised that the Energy Prices Bill, aimed at setting out the legal framework for the provision of financial support to domestic and non-domestic energy consumers, has passed the Houses of Parliament and has been laid into law. The Bill will now be referred to as the Energy Prices Act 2022.
The Bill became law without any further amendments and the key facts, as previously notified, remain the same – please find a summary below:
- The relief shall apply from 1st October 2022 to 31st March 2023;
- The Government Wholesale Price Cap (alternatively referred to as the Government Supported Price) is 21.1p per kWh for electricity and 7.5p per kWh for gas;
- The discount (where relevant) will be applied to energy consumed from 1st October 2022 onwards;
Fixed energy contracts: You will be eligible for a discount if you entered into a fixed contract on or after 1st December 2021 (or if you are in a flexible, deemed, or variable contract) and your average baseload is above the Government Supported Price;
Flexible energy contracts: The discount will be the difference between the monthly weighted average baseload and the Wholesale Price Cap. The maximum discount to be applied is 34.5p per kWh for electricity and 9.1p per kWh for gas.
Deemed energy contracts: The discount will be the difference between the Wholesale Price Cap and the average expected wholesale price over the length of the scheme. The maximum discount to be applied is 34.5p per kWh for electricity and 9.1p per kWh for gas.
As previously advised, if you are eligible under the Act to receive relief, your energy suppliers shall calculate and apply discounts to your invoices for energy consumed from 1st October 2022 onwards. Do not disclose account information to rogue callers!
If you wish to establish whether you will be eligible under the Act and the level of discount you will receive, please contact your Energy Contract / Account Manager. Do not attempt to make this calculation without their input, as you may not be able to correctly identify and extract the energy commodity cost element from your energy baskets’ rates.
As always, should you require any further information or support, please do not hesitate to contact me.