UK companies were relieved today to find out that the Government intends to cap electricity and gas costs for businesses. However, most businesses believe more must be done to secure their futures and unleash growth.
Under the new government plans gas prices will be capped at £75 per megawatt hour and electricity at £211 per megawatt hour. The cap will apply to those businesses who took out fixed contracts which were agreed on or after the 1st April 22, as well as flexible and variable contracts.
The new capped pricing will come into effect from the 1st of October and will cost the UK Government billions of pounds. Businesses should see their first savings on their bills in October.
The Government are hoping that as well as relieving pressure on businesses that the price cap will stop the rising prices for basic building materials.
Director of Operations for the Civil Engineering Contractors Association Marie-Claude Hemming said: “This is welcome news for all UK businesses, and CECA members will be relieved at the certainty capping energy costs will bring over this winter.
“We believe that if the new administration is to successfully unleash economic growth, it must not only adopt such fire-fighting measures as an energy cap for businesses and consumers but must redouble its efforts to get spades in the ground in infrastructure projects up and down the country.
“Harnessing investment in infrastructure is the best means of delivering a better future for businesses and communities in all parts of the UK.
“We look forward with interest to the planned ‘fiscal event’ planned by the new Chancellor later this week, and call on the new Prime Minister Liz Truss to go for growth through expediting infrastructure schemes, so that CECA members can play their role in creating a resilient and prosperous UK plc in the months and years ahead.”