The British Chambers of Commerce has welcomed Government plans to offer businesses a discount on their energy bills as a “significant” step in the right direction but said reducing bills for just six months would not be enough.
The Government said it will cap wholesale energy prices for businesses at “less than half” anticipated winter levels as part of a dedicated support package.
The Energy Bill Relief Scheme will offer discounts for all firms for six months from October 1.
Hospitals, schools and other settings such as community halls and churches will also get help.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “For months we have been calling for Government intervention to help businesses with eye watering energy bills. This support package is significant and will ease the cost pressures that have been piling up on businesses.
“It will allow many firms that were facing closure, or having to lay off staff or reduce output, to keep going through the winter.
“But the exact level of support will vary greatly from business to business depending on the detail of its contract, so some will inevitably do better than others.
“We now need action to get this saving passed onto business as soon as possible – every day will put some firms closer to the edge and they cannot hang on much longer.
“There must also be effective legal oversight to ensure no firms that are due this money miss out.
“For those that will benefit, six months support is not enough to make plans for the future.
“We understand there are a range of unknowns for the Government in looking ahead, but without further reassurance very few firms will make plans to invest or grow.
“Some businesses will still struggle to meet their bills despite this government intervention, the Chancellor must prioritise those firms in his mini-budget on Friday.
“There are a range of other challenges that must be addressed including labour shortages, supply chain disruption, and rising raw material costs.
“To truly revitalise our economy for the difficult months ahead then there must be a clear long-term plan that gives business the confidence to grow.”
Under the energy relief scheme, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months.
Firms do not need to contact suppliers as the discount will automatically be applied to bills and savings will be seen from October’s bills but received in November.
The scheme will apply to fixed contracts agreed on or after April 1 and variable and flexible tariffs and contracts.
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