Moray Chamber of Commerce welcomes UK Government's Energy Bill Relief Scheme but warns rises are still "astronomical"
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ENERGY bill support for struggling businesses from the UK government has been welcomed by Moray Chamber of Commerce.
The Chamber warned, though, that, despite the Energy Bill Relief Scheme, price rises will be "astronomical" for businesses.
The UK government announced the business support measures yesterday – with energy prices to be capped for six months.
As well as businesses, the cap will apply to hospitals, schools, charities, churches and other settings like community halls in Moray.
The scheme will apply to fixed contracts agreed on or after April 1, 2022 and apply to energy usage from October 1 to March 31, 2023.
Sarah Medcraf, Moray Chamber's CEO, welcomed the news – but warned that rises will still be tough to deal with for firms.
"Any quick solution is welcome when businesses were literally at a cliff edge, wondering whether or not they would make it through October," she said.
"However, the relief scheme still sees electric costing two to three times more per kwh than many businesses were paying when in contract, and it's up to four times more for their gas.
"So the increases that some of these businesses will face are astronomical. Many will use the next six months to see if their business model is viable anymore."
Businesses are continuing to struggle after coronavirus – plus rises to minimum wage, which Mrs Medcraf explained affects everyone, as the gap between wage bracket needs to reflect responsibility.
"Many are still servicing the debt that they took out through Covid, there has been increase to minimum wage, the cost of goods has increased substantially yet the consumer spend is down. So it’s tough.
"The Chamber network had been pushing for 5 per cent VAT on energy bills and we will see if this is forthcoming but it may be a tool in their toolbox for after the six-month period."
MORE: UK Government support welcomed by Moray MP Douglas Ross, but warning 'it may be too late'.
