A six-month scheme to help businesses cope with rising energy costs has been unveiled by Prime Minister Liz Truss.
Announced as part of a wider energy prices support package, the scheme will see business energy costs capped at the same price per unit as households for six months.
The scheme will be reviewed after three months, with more support being potentially offered to vulnerable sectors.
Following the six-month scheme, there will be “focused support” for any sector still struggling. A new Energy Supply Taskforce has also been created to negotiate long-term energy contracts with domestic and international suppliers of energy.
On the consumer side, the energy price cap will be set at £2,500 a year, due to come into effect on 1 October 2022.
The retail sector has been rocked by rising quotes for energy usage over the past six months with retailers seeing costs skyrocket.
The Association of Convenience Stores (ACS) had called for similar measures to help convenience retailers survive these rising costs, urging the government to introduce a price cap on electricity for small businesses in line with the cap that is already in place in the domestic market, as part of a suggested £570m rescue package for retailers.
It also called on retailers to write to their MP, outlining the need for support. Retailers can still write to their MPs by putting their store postcode into the ACS’ online tool here: ACS.org.uk/campaigns
Retail trade bodies called for support beyond the six-month timeframe.
ACS chief executive James Lowman said: “We welcome the announcement for the support for businesses which is much-needed and long-awaited. We have been calling for a price cap for local shops in line with what we already see in the domestic market. While we are pleased that the Government has taken action to support businesses with their spiralling energy costs, we are clear that help may be needed for local shops beyond the current 6 month timeframe.
“Local shops play an essential role in both the economy and to our communities and it is vital that this is considered when reviewing the support that is being offered.”
The National President of the Federation of Independent Retailers (the Fed), Jason Birks, added: “Although the devil is in the detail, today’s news of support for businesses should give struggling retailers some comfort and relief.
“Six months is a starting point, but the Fed and its members need longer term assurances that support will be ongoing. However, we look forward to hearing more about the financial support that will be available and assisting members in making sure they receive the help and support they need.”
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