The UK government has announced it will cut energy bills by at least half for businesses – including spas, salons and gyms – as well as charities and public sector organisations starting from 1 October 2022.

The new six-month government initiative, the Energy Bill Relief Scheme, was revealed yesterday by business secretary Jacob Rees-Mogg.

“We’ve seen an unprecedented rise in energy prices following Putin’s illegal war in Ukraine, which has affected consumers up and down the country and businesses of all sizes,” he said, adding that the subsidy will give organisations “the equivalent level of support” that households have received through the Energy Bills Support Scheme.

Capped prices will see the cost of all non-domestic consumption of electricity at £211 (€242, US$239) per megawatt hour (MWh) for electricity and £75 (€86, US$85) per MWh for gas.

By comparison, wholesale costs this winter are expected to be £600 (€688, US$678) per MWh for electricity and £180 (€206, US$204) per MWh for gas.

The relief scheme will help all non-domestic energy customers in England, Scotland and Wales. A parallel scheme will also be launched in Northern Ireland.

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

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

Support will automatically be applied to bills over the next six months and a review will be carried out in three months to “identify the most vulnerable non-domestic customers” to determine how the government will “provide ongoing focused support for vulnerable industries” once the six-months are up.

More information about the government’s Energy Bill Relief Scheme can be found here.