A new scheme to support businesses with their energy bills is being announced by the Government today.
Under the current scheme the unit cost of gas and electricity is capped for all businesses but that will expire at the end of March.
It is now set to be replaced with a new scheme that discounts wholesale prices.
Heavy energy-using sectors, such as ceramics and steel manufacturers, are expected to get a larger discount than others.
It comes as almost two thirds of manufacturers in Britain fear blackouts this winter due to soaring energy prices. Many have warned of being on a cliff edge and have called on the Government for ongoing support.
The new scheme is expected to run until March 2024 to avoid this. But, according to Treasury sources speaking to the BBC, the total level of government support is expected to fall sharply – by more than half – from the £18.4bn the current six-month scheme is estimated to have cost by the time it ends.
The Chancellor is expected to stand up in the House of Commons this afternoon and outline his plans for the new scheme.
Domestically, the bill for a typical household could rise from £2,500 a year to £3,000 a year from April – although analysts believe there may be a slight fall in bills by the autumn if current market trends continue.
