Thank you for contacting me about commercial energy prices.
Current inflation is being driven by rising energy costs, provoked by surging demand after the pandemic as well as Russia’s invasion of Ukraine, which in turn has put pressures on costs.
I want to reassure you that I take this issue very seriously and the Government recognises the impact rising energy prices have on businesses of all sizes. I welcome that Ofgem and the Government are in regular contact with business groups and suppliers to understand the challenges they face and explore ways to protect businesses.
I welcome that the extensive engagement continues across government at both a ministerial and official level on this situation to understand, and to help mitigate the impacts of this issue. The Government’s priority is to ensure costs are managed and energy supplies maintained.
As you may be aware, the Government will bring forward emergency legislation to establish a new Energy Price Guarantee which will ensure that the average British household pays no more than £2,500 per year for their energy bills for the next two years from October.
Businesses will be offered an equivalent guarantee for six months for those hit by rising prices, and after those six months we will provide further support for vulnerable sectors, such as hospitality, including our local pubs. We will work with businesses to review where this should be targeted.
I want to see a targeted effort to help small, local businesses survive as their overheads increase. They make a very important contribution to the Island’s economy, and we need to protect peoples’ livelihoods.
Thank you again for taking the time to contact me.