What challenges will businesses face when the energy cap ends?

What challenges will businesses face when the energy cap ends?


In April 2023, the UK energy cap for businesses will expire, and there is currently uncertainty over whether it’ll be extended. And even if it is, it’s not yet known what that full help package will be.

What help are businesses getting right now?

Under the current Energy Bill Relief Scheme, businesses are entitled to a government-supported energy price of:

  • £211 per MWh for electricity
  • £75 per MWh for gas

A comparable rate will be set shortly for Northern Ireland.

Wholesale costs in Scotland, England and Wales this winter are expected to be around:

  • £600 per MWh for electricity
  • £180 per MWh for gas

While the maximum discount for those on default or variable tariffs has been set at:

  • £345/MWh for electricity
  • £91/MWh for gas

What does this mean in savings?

Well, forecasts show savings in England, Scotland and Wales this winter are expected to be:

  • £600 per MWh for electricity
  • £180 per MWh for gas

Business energy contracts signed since 1st December will now be eligible under the new scheme, while those on variable tariffs receive an automatic discount per unit of energy used. The scheme is also available to all non-domestic energy customers in England, Scotland and Wales, with a separate but parallel scheme running for companies in Northern Ireland.

Businesses on variable or flexible contracts are advised to review their existing arrangements and even consider moving to fixed contracts (ideal if you don’t want exposure to price variation). The p/kWh government support for comparable contracts will be a set price across all suppliers, but individual bills will continue to vary.

But what if your energy contracts are due to expire in the next sixth months?

What challenges might you face?

Challenges your business might face when the energy cap ends

The truth is, we don’t know for sure what every challenge will be, but you’ll almost certainly face:

1. Price rises

As soon as your contract ends, your costs will rise. And even if your current supplier switches you from a fixed tariff to a standard variable, your energy bills will likely skyrocket.

2. A struggle to find a good deal

You’ll miss out on deals that can reduce your outgoings by waiting until the price cap ends. There is no way to predict what will happen in April 2023, but one thing is certain: if you wait until your contract expires, you’ll miss out on all the best options.


So, if your energy contracts are due to expire in the next six months, what can you do to ensure you get the best possible deal?

How to get the help you need

To find the best deal possible, you need to work with an energy consultant, like us.

By working with Inteb, we can:

  • Lock you into the best deals to lower your risk of being hit with hidden fees, costs and charges
  • Reduce your energy costs by finding saving in your current energy usage
  • Improve your carbon footprint by helping you to reduce your greenhouse emissions
  • Develop a strong energy procurement strategy that builds strong relationships with energy suppliers to get you the best deals
  • Help you keep track of your costs, so you can keep within your budget and limits
  • Improve your energy forecasting, so you’re not caught out by unexpected rises and costs

We can also negotiate with suppliers on your behalf to gain you exclusive tariffs.  And we also help you compare different options to find the best choice for your business.

Interested in working with Inteb?

Then get in touch on our details below.

With our experience in net-zero strategy and energy efficiency, we can help you stay compliant, lower carbon emissions, reduce energy waste, and save you money on your energy bills.

All of which makes Inteb the best partner to help you navigate the uncertain months ahead.

Don’t wait to take action

Let’s get the conversation started – call us now on 0151 601 3476