Business energy bills could be cut by a third under government plan

A government support scheme, set to be announced later, could help businesses cut their energy bills by a third. 

Business Secretary Jacob Rees-Mogg is expected to reveal a cap on wholesale energy costs for business customers. 

It is thought the limit will be 21.1p per kWh for electricity and 7.5p per KWh for gas – a discount of a quarter to a third on current market prices.

It means businesses facing a £40,000 energy bill could see a reduction of £10,000 depending on usage patterns. 

Reports say the changes will apply to contracts from 1 October and fixed contracts taken out since April.

The government is set to pass new laws to force the price cut to be passed on. At present, the current market prices are about 28p per unit for electricity and 11p for gas. 

PM Liz Truss has previously said support for business would be limited to six months.

There will be an option to extend it for “vulnerable businesses” but no details of which sectors this applies to are not yet know.