Britain caps electricity and gas prices for businesses

Britain announced on Wednesday it would control the cost of electricity and gas for businesses from next month. This came after a similar scheme for consumers, reducing the pressure of soaring energy costs.

It pointed that wholesale prices for electricity would be capped at 211 pounds ($239.17) per megawatt hour (MWh) and for gas at 75 pounds per MWh.

“We have stepped in to stop businesses collapsing, protect jobs, and limit inflation,” finance minister Kwasi Kwarteng stated.

He added that the government will compensate suppliers for the reduction in wholesale gas and electricity unit prices that they are passing onto non-domestic customers.

The scheme will apply in the beginning of Oct. 1 to Mar. 31 2023, for all non-domestic energy users. The users include charities and the public sector such as schools and hospitals as well as businesses.

The level of the cap has been determined at less than half the wholesale prices expected this winter.