Is the UK looking at energy bailout for businesses?

A former chief executive of Ofgem has called on ministers and the regulator to introduce “social tariffs”

Big Zero Report 2022

The government is reportedly considering introducing financing schemes for businesses struggling to pay their energy bills.

According to The Sunday Times, mechanisms used during the pandemic to support companies that saw their profits slump might be repurposed to help them navigate through the energy crisis.

Among the various options which are being examined by the Treasury, is giving grants to small and medium-sized enterprises (SMEs), as well as business rates holidays to lower their electricity and gas bills.

Writing in the Mail on Sunday, the Business Secretary confirmed that people will soon receive more help.

Kwasi Kwarteng said: “I want to reassure the British people that help is coming.”

Speaking to The Sunday Times, former Chief Executive of Ofgem Dermot Nolan said: “I think the government should provide emergency support as it’s been doing with the £400 but at a higher level, mainly concentrating on vulnerable customers.”

Mr Nolan also urged Ofgem to introduce “social tariffs”, which could provide a safety net for those customers who might be struggling to afford their bills. 

Ofgem has been approached for a comment.

If you enjoyed this story you can sign up to our weekly email for Energy Live News – and if you’re interested in hearing more about the journey to net zero by 2050, you can also sign up to the future Net Zero newsletter. 

Latest Podcast