Govt’s new energy relief plan for businesses could be too little too late for some says Quilter Cheviot’s Gilbey

by | Sep 21, 2022

Share this article

Today’s announcement of the government plan to help cut energy bills for businesses, has been much anticipated.  Tom Gilbey, equity research analyst at Quilter Cheviot comments on the news:

“Under the energy relief plans just announced, energy tariffs introduced by government will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals). Had nothing been done costs might have doubled versus current levels with costs for businesses spiralling out of control. This plan will last for six months, starting in October, and then Liz Truss has said there may be some additional support which will be targeted at vulnerable businesses following a review in three months.

“There is no doubt that this energy relief plan is going to be helpful to businesses but, even with the scheme in place, prices will likely still cause significant issues for businesses over the winter especially those that are less well capitalised. In fact some companies have already flagged this isn’t enough to see them through the winter.

“How the plan will be paid for is still unclear with Truss currently planning tax cuts to be announced on Friday. However, it seems likely that the taxpayer will be paying for this down the line. Due to there being no price cap, the actual bills would have increased several fold, and it is likely to cost the government a lot. At present, the only companies not feeling the pain will be the energy generators which continue to rake in bumper profits, which may not wash well with the general public.”

 

Share this article

Related articles

Winners of the Protection Guru Awards 2022 are announced

Winners of the Protection Guru Awards 2022 are announced

Protection Guru, has today announced the winners of Protection Guru Awards 2022. In this, their second year, the awards have been established to recognise the leading lights of the protection industry. The team at IFA Magazine extends our congratulations to all this...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode