Britain caps electricity and gas prices for businesses

Key Points
  • Britain will cap electricity and gas bills for businesses at less than half of expected wholesale prices this winter.
  • Energy suppliers will be compensated by the government.
  • Finance minister Kwasi Kwarteng said it would "stop businesses collapsing, protect jobs, and limit inflation".
"It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our economy," Finance Minister Kwasi Kwarteng said in a statement.
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LONDON — Britain said on Wednesday it would cap the cost of electricity and gas for businesses from next month, following a similar scheme for consumers, helping relieve the pressure of soaring energy costs.

It said wholesale prices for electricity would be capped at 211 pounds ($239.17) per megawatt hour (MWh) and for gas at 75 pounds per MWh.

"We have stepped in to stop businesses collapsing, protect jobs, and limit inflation," finance minister Kwasi Kwarteng said.

The government will compensate suppliers for the reduction in wholesale gas and electricity unit prices that they are passing onto non-domestic customers, it said.

The scheme will initially apply from Oct. 1 to Mar. 31 2023, for all non-domestic energy users, including charities and the public sector such as schools and hospitals as well as businesses.

The level of the cap has been set at less than half the wholesale prices anticipated this winter, it said.