September 28, 2022

The UK apparel sector will likely welcome news this morning (21 September) of an energy support package for businesses.
By Hannah Abdulla
The Energy Bill Relief Scheme will see a significant cut in energy bills for UK businesses and applies to both fixed contracts agreed on or after 1 April 2022, as well as to variable and flexible tariffs and contracts.
The discount will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users.
To administer support, the government has set a Supported Wholesale Price – expected to be GBP211 per MWh for electricity and GBP75 per MWh for gas – less than half the wholesale prices anticipated this winter. This is equivalent to the wholesale element of the Energy Price Guarantee for households in the UK. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
Commenting on the announcement, Pippa Stephens, analyst at GlobalData, said: “With the previous rises in UK energy bills having resulted in a significant increase in retailers’ overheads, particularly those operating physical stores, this newly announced support package will be extremely welcome news, with many having already begun to see serious impacts to their profitability. However, with this support only guaranteed for six months and prices still expected to be higher than previous years, many businesses will still continue to struggle, and will be hoping for this scheme to be extended to ensure longer-term help.”
The specifics
Speaking to Just Style, Adam Mansell, CEO of the UK Fashion and Textiles Association, comments: “UKFT has been raising the critical impact of energy costs on the sector to government for many weeks and the newly announce Energy Bill Relief Scheme will see a significant cut in energy bills for businesses.  
“With many of UKFT’s members facing a sixfold increase in energy bills, this is extremely welcome news. Bringing in a scheme that will see an automatic relief applied to bills rather than one where companies had to apply for the relief is all extremely welcome and will mean that companies can continue to focus on producing world-class fashion and textiles
“The scheme will be reviewed in three months time and UKFT will be working with BEIS during this time to ensure that it continues to provide the vital help the industry needs at this challenging time.”
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