Business
Jacob Rees Mogg: Galvanises businesses with action on energy
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
New showroom for car dealership approved by county planners
PLANS for a new showroom for a Pembrokeshire car dealership which has recently acquired a new Isuzu vehicle franchise, have been given the go-ahead.
In an application to Pembrokeshire County Council, Gareth Hughes Motors of 25 Burton Road, Sardis, through agent Hayston Developments & Planning Ltd, sought permission to replace a temporary canopy with fixed permanent mini-showroom.

A supporting statement said: “Gareth Hughes Motors is a family run enterprise, established in 1982. In order for the business to respond to the latest technological advancements, especially those related to the transition to hybrid and electric vehicles, additional space and different resources will be required.
“Approval of this application will assist in the delivery of these required resources, associated staff training and recruitment for the servicing of electric vehicles will also lead to the retention and provision of skilled employment.”
It says the extension will be designed to allow sufficient space to display Isuzu vehicles, an additional motor franchise recently acquired by the dealership, with no changes proposed to the existing access from the C3007 as the mini-showroom would take place to the rear of the site and replace an existing canopy structure.

It added: “The environmental impacts from the proposal are minimal as the replacement structure takes place on a concreted/bitumac surface which is currently used for the parking of cars. In addition, the design and use of materials complements that of the current showroom and repair shop and by the addition of a bird and bat box on the south-east of the proposed extension.
“The proposed new mini-showroom will accommodate a maximum of two vehicles and would take place to the rear/side of the site and would be constructed in materials which complement those of the existing showroom and service bays.
“Although Gareth Hughes Motors is located within a group of residential properties it is considered that there will be no significant negative impacts on those neighbouring properties because of their distance from the application site, the orientation of the buildings.
“The securing of an additional franchise at this Sardis site will both help secure the future of the existing staff and create opportunities for additional employment in the motor trade.”
The application was conditionally approved by county planners.
Business
The Cheesecake Guy Ltd plans withdrawn following community council objections
PLANS for what could have been the third store in the country for Welsh cheesecake business The Cheesecake Guy Ltd at Saundersfoot’s Coal Building interpretation centre have been withdrawn.
In an application to Pembrokeshire Coast National Park, Craig Taylor of Merthyr Tydfil-based The Cheesecake Guy Ltd sought a change of use of part of Saundersfoot’s Cambrian Terrace Coal Building interpretation centre to create a small retail unit.
On its website, The Cheesecake Guy says of its business and products: “Established in 2019, The Cheesecake Guy is all about delivering indulgent, handcrafted cheesecake desserts with a twist. While we offer a range of sweet treats, our specialty — and customer favourite — is the signature cheesecake jar.
“Made with quality ingredients and packed with rich, creamy layers, our jars are the perfect dessert for any occasion. Whether you’re treating yourself or sharing with others, The Cheesecake Guy brings a spoonful of happiness to every bite.”
While no supporting statement was published for the Saundersfoot proposal, the application said the scheme, if approved, would employ two full-time members of staff, operating 10am-6pm Mon-Sat, and 10-5 on Sundays and bank holidays.
Of the scheme itself it said it would involve “retail sales of pre-prepared desserts and merchandise,” adding there will be “no on-site manufacturing or heavy processing,” with “equipment limited to display fridges and freezers”.
If approved, the Saundersfoot site would have been the third outlet for The Cheesecake Guy, with sites in Merthyr, and, more recently, Newport Market.
For its Newport site, The Cheesecake Guy says: “We specialise in creating a wide variety of cheesecake desserts that cater to all tastes. Our menu features popular favourites that have won the hearts of many, alongside exciting new creations designed to keep your taste buds satisfied.
“Whether you’re a classic cheesecake lover or an adventurous foodie, we promise a cheesecake experience like no other. Each cheesecake is made with the utmost care, ensuring a rich, creamy texture and a burst of flavour in every slice (or jar!).”
Since the application was submitted, Saundersfoot Community Council objected “on the basis that the harbour is diluting the original intention of this area, which was designed to be an educational section of the development”.
The application is now, as of June 19, marked as withdrawn.
Business
Amended Fishguard children’s home scheme approved
AN AMENDED scheme for a children’s care home on the edge of Fishguard has been approved after a previous call was refused.
In an application to Pembrokeshire County Council, Martin Leahy of Ty Caredig Ltd sought a certificate of lawfulness permission for the use of a dwellinghouse to a residential care home for up to two children at Bryn Delyn, Y Fraich, Fishguard.
Last November, a similar call to allow Bryn Delyn to be used as a children’s home, which raised fears from local objectors the scheme was being ‘rubber stamped’ by the council, was refused.
In that application to the council, Cardiff-based Ty Caredig Ltd sought permission for a Certificate of Lawfulness on the basis the use was not materially different from the property’s existing lawful use.
Residents had accused the council of “pushing through a highly controversial children’s home application behind closed doors”.
A supporting statement for that scheme, with many redacted parts, said the four-bed property had a lawful use as a dwelling house; saying the use as a care home did not require planning permission through a change of use.
However, planners said the use of the dwelling as a care home “would represent a material change of use requiring the benefit of planning permission”.
Since then, amendment to the scheme, for a lawful change of use was submitted, a supporting statement saying Ty Caredig Ltd operates homes throughout Wales that provide specialist care for children, the latest scheme “seeks formal confirmation that the proposed use of Bryn Delyn as a children’s care home for up to two children (plus care staff) would not require planning permission”.
Fishguard Town Council objected, on the grounds of highway safety and parking issues.
It also raised points of “apparent discrepancies between the planning application and the information available on the website,” but stressed it did support provision of suitable accommodation for vulnerable young people and children “with the correct infrastructure in place”.
Local county councillor Cllr Par Davies has said the scheme has her “full support,” as did the certificate call, adding: “Rumours abound regarding this application with objections concerning the usage of the property as a care home for young people. The application states that only two young people would be cared for in the property.
“This type of property is needed as we often talk as councillors for the need for Pembrokeshire children in care to remain in Pembrokeshire instead of the alternative of moving them to other areas in the country and this application fulfils that need.”
The application was approved by planners, the approval stating “Based on the information submitted and on the balance of probability it is considered that the use of the property as a residential care home for up to two children would not result in a material change of use from the lawful use of the property as a dwellinghouse and as a result a certificate of lawfulness for a proposed use should be granted.”
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