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Jacob Rees Mogg: Galvanises businesses with action on energy

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Westminster unveils energy support for businesses

NON WEDNESDAY, September 21, the UK Government announced new support for households, businesses and public sector organisations facing rising energy bills in Great Britain and Northern Ireland.
Through a new government Energy Bill Relief Scheme, the 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) whose current gas and electricity prices have been significantly inflated in light of global energy prices.


The support will be equivalent to the Energy Price Guarantee put in place for households.


It will apply to fixed contracts agreed on or after April 1, 2022, and to deemed variable and flexible tariffs and contracts.


The Price Guarantee will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users.


The savings will be first seen in October bills, which are typically received in November.


As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support.


Support (in the form of a p/kWh discount) will automatically be applied to bills.

RISK OF BUSINESSES MISSING OUT

The price reduction level for each business will vary depending on their contract type and circumstances.


Non-domestic customers on existing fixed-price contracts will be eligible for support as long as the contract was agreed on or after April 1, 2022.


Provided that the wholesale element of the price the customer is paying is above the Government Supported Price, per unit energy costs will automatically be reduced by the relevant p/kWh for the duration of the Scheme.


Customers entering new fixed price contracts after October 1 will receive support on the same basis
those on default, deemed, or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme.


Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases.


The government is working with suppliers to ensure all their customers in England, Scotland and Wales are allowed to switch to a fixed contract/tariff for the duration of the scheme if they wish, underpinned by the government’s Energy Bill Relief Scheme support for businesses on flexible purchase contracts, typically some of the largest energy-using businesses.


The government will provide equivalent support for businesses not connected to the gas or electricity grid. Further detail on this will be announced shortly.

SUPPORT MUST AVOID
THE CLIFF EDGE

The government will publish a review of the scheme’s operation in three months to inform decisions on future support after March 2023.


The review will particularly focus on identifying the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs.


Prime Minister Liz Truss said: “I understand the huge pressure businesses, charities, and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.


“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.


“At the same time, we are boosting Britain’s homegrown energy supply, so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”


Kate Nicholls, CEO of UKHospitality said: “This intervention is unprecedented, and it is extremely welcome that the government has listened to hospitality businesses facing an uncertain winter. ef
“The government has recognised the vulnerability of hospitality as a sector, and we will continue to work with the government, to ensure that there is no cliff edge when these measures fall away.”

SOME BUSINESSES WILL FALL
BETWEEN THE CRACKS, SAYS FSB

Tina McKenzie, Policy and Advocacy Chair, Federation of Small Businesses (FSB) said: “This announcement will give certainty for the next six months, but a tough year remains ahead of many small firms.


“Many have been waiting for details on the energy bills support package to plan confidently for the winter and beyond, so it’s encouraging to have clarity from the Government on the form that its support will take.


“The next stage will be for small businesses to learn what the changes mean for their current contracts and for any offers they have been looking at.


“Subsidising the unit costs of electricity and gas for six months is welcome, but there are those who miss out from before the six-month period, and help must not result in a cliff-edge afterwards.
“We are calling for a hardship fund to be created for those who fall outside of the current support or for whom the current support will be insufficient.


“There will be hardship for some businesses which signed fixed contracts after prices rose but before April, who find themselves excluded from the scheme.


“FSB calls on energy suppliers to allow those customers to switch without charge to new fixed contracts, covered by the Energy Supported Price if that makes the difference for the small business to survive.


“Small businesses are the definition of vulnerable when it comes to these energy price hikes. Small firms do not have the ability to hedge, or negotiate energy prices, so we will be encouraging Government to continue to help small businesses across all different sectors after the six months have elapsed.”


Ms McKenzie called for common sense and understanding from the energy industry, which will continue to reap massive profits: “Energy companies must play their role to support their small business customers.


“Energy providers must pass on the benefit of the freeze in full and must immediately provide updated bills and quotes to each small business customer who will be wondering today what the changes mean for them.


“We’re concerned that there is no mention of a cap on rises to standing charges, which are the other main element of energy bills. While households’ standing charges will be capped, the same can’t be said for businesses. 

“We call on energy suppliers to support their small business customers by committing to lowering standing charges as far as possible.


“We’d like to see energy companies promise not to disconnect businesses from energy supply that are currently unable to pay for their energy bills this winter and not ask for disproportionate upfront payments.


“Currently, small firms could be disconnected from energy supply if they cannot pay bills after 30 days.
“We will be writing to energy companies in this regard and encourage them to support their small business customers in this difficult period.”

SHORT-TERM FIX FOR
LONG-TERM PROBLEM

Matthew Fell, CBI Chief Policy Director, said: “We welcome the government’s quick and decisive action to provide hard-pressed businesses with a substantial short-term fix to a long-term problem.
“The package will ease worries about otherwise viable businesses shutting up shop, and smaller companies especially will benefit from the discounted rate.


“Businesses will also want to know more about the exit strategy and what happens when the six-month cap runs out. Working closely with businesses will be key to successful implementation.


“The long-run solution is to double-down on energy security and to incentivise firms to push ahead with ambitious energy efficiency programmes to lower demand.”

Business

Welsh Water slammed after thousands were left without water

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DWR CYMRU has been slammed by a councillor who warned people “could have died” after thousands were left without water.

Tens of thousands of residents across the county were left without water after a mains burst at a treatment plant in Dolgarrog last week.

Welsh Water said supplies were restored to homes and businesses on Monday morning.

The chairwoman of Conwy’s finance committee slammed Dwr Cymru during a meeting at the council’s Bodlondeb HQ on Monday.

Old Colwyn councillor Cheryl Carlisle thanked volunteers and council staff for pulling together before calling for a public inquiry into the crisis.

Security guards

Cllr Carlisle claimed those in poor health had been left without water and said security guards at water stations had turned people away with small children.

“I’d like to take the time to thank everyone that’s being involved in the crisis in Conwy over the last six days, the selfless volunteers, everyone that provided water and help to the elderly and vulnerable, and also the engineers for fixing the problem and our social care staff and the other staff who have helped keep our nursing homes going, our care homes, and (looked after) the most vulnerable,” she said.

“On a different note, there will need to be an inquiry, won’t there, into the crisis response from Dwr Cymru.

“You cannot fault the engineers, but the delays in basic organisation, like setting up the water stations.

“It was 48 hours in my particular community. Without the volunteers, it would have been very, very serious, indeed, for those with health conditions.”

She added: “The priority lists of Dwr Cymru did not work.

“There were people on it that were still undelivered (not had water delivered) as was last night [Sunday], cancer patients, dialysis patients. This is completely unacceptable.

“Security guards turned away members (of the public) with little children. That was absolutely unacceptable as well.

“I think this has brought out the very best in people and, in just a few, the very worst. There needs to be a clear disaster plan going forward.”

Cllr Carlisle then insisted an inquiry was needed after Cllr Goronwy Edwards suggested a review.

She added: “I think it needs to be something more than a review, given the seriousness.

“People could have died, those with (serious health conditions). I don’t think we should downplay anything until everyone has come through this intact.”

Conwy Council leader Cllr Charlie McCoubrey also thanked those councillors and members of the public “who had gone above and beyond to look after their communities”.

He added the authority was now in a recovery phase with some households still without water and some schools affected.

“Clearly, with any major incident, questions need to be asked about could this have been prevented, was the response adequate, and what happens in the future in terms of how we coordinate things and prevent incidents like that happening again?”

Cllr McCoubrey said he was working with Welsh Government to get answers from Dwr Cymru.

Report by Richard Evans, Local Democracy Reporter

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Business

Decision due on development of buildings at Trewern Farm

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A CALL to let a 950-herd north Pembrokeshire dairy farm keep a farm shed built without permission over a decade ago is expected to be approved later this month.

In an application recommended for conditional approval at Pembrokeshire Coast National Park’s development management committee meeting of January 29, Trewern Farms Ltd is seeking permission for the retention of the agricultural building and lay down area at Trewern Farm, Felindre Farchog.

The application is part of a wider complex planning history associated with the site.

A report for Park planners says: “Trewern Farm is operated as a zero grazing style dairy farm with 304 hectares located on two separate parcels of land, one at Trewern with the remainder being at Penpedwast, adjacent to Castell Henllys. The farm has a dairy herd of approximately 950 cows.

“Trewern Farm has expanded significantly over recent years with many of the buildings and structures on site having been erected without the prior benefit of planning permission, and having since been regularised through a combination of retrospective applications and certificates of lawfulness.

“The building subject of this application is believed to have been constructed in 2014. The site currently comprises an agricultural shed immediately adjoining another shed and is used for cubicle housing.

“A slurry lagoon, silage clamps and 12 of the newer agricultural buildings are now lawful as Certificates of Lawfulness were granted for these whilst the Authority was awaiting an Environmental Impact Assessment to be submitted by the applicants for the 2015 planning application to regularise the unauthorised buildings.

“However, this is the last of the outstanding agricultural buildings which are not lawful, and an enforcement notice was served in May 2018 requiring its removal. This notice was appealed in November 2019 and is currently being held in abeyance by the Planning Inspectorate.”

It says the building referred to in the application “is described as being designed to house cattle in a series of cubicles, and forms part of a longer set of buildings running along the southern section of the farming complex,” adding: “The livestock numbers are not proposed for increase as a result of this application but will be as secured [by a planning consent] restricted to no more than 960 milking cows with 1020 maximum excluding calves.”

Local community council Nevern has previously said it has “grave concerns” about the application, asking, amongst other things, how the 960 cattle limit will be policed and important nearby woodland will be protected.

The application was previously recommended for approval at the park’s December meeting, but was deferred as not all received documentation had been published on the national park’s planning website.

The application is now returning to the January meeting, again recommended for conditional approval.

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Business

Castell Howell launches new Food Show at Welsh International Culinary Championships

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CASTELL HOWELL has launched a new Food Show, showcasing the food trends and innovations that the hospitality industry can expect to see in 2025 and giving visitors a preview of its growing range of Welsh food and drink products. 

The new industry event is taking place alongside the 2025 Welsh International Culinary Championships (WICC) at the International Conference Centre in Newport from 20-22 January.

Castell Howell managing director Matt Lewis said: “The Castell Howell Food Show will be a new highlight in this three-day celebration of Welsh culinary excellence, hospitality skills, and innovation. As the largest wholesale supplier of Welsh Food & Drink, it gives us the opportunity to champion our excellent Welsh producers, to support hospitality customers in developing their businesses and, ultimately, to help our communities and local economies throughout Wales to thrive.

“Visitors will have the unique opportunity to engage directly with Castell Howell specialists representing every aspect of our business from insights into the latest trends, to discovering what’s in the pipeline for Welsh food and drink producers in 2025,” he said.

The Castell Howell Food Show will be a new annual event in the calendar at the start of the year, serving as a preview for its larger established trade shows, hosted at Parc y Scarlets in Llanelli and Parc Eirias in Conwy. 

The Welsh International Culinary Championships, organised by the Culinary Association of Wales, bring together the nation’s most talented craft chefs, butchers, and front-of-house professionals for three days of demanding competition. The 2025 WICC also hosts the Skills Competition Wales hospitality finals, showcasing the country’s top apprentices.

Deputy First Minister, with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies, said: 

“These two events promise to be a fantastic showcase for Wales’ food and drink industry. It’s an opportunity to celebrate Wales’ culinary excellence and the strength of our hospitality sector. Castell Howell plays an important role in supporting Welsh farmers, producers and the hospitality sector – and I wish them well with this new event.” 

Further information about the event is at foodshow.wales

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