Baachu/ GROWTH PLAN 2022 – ENERGY

Baskar Sundaram
Baskar Sundaram

As part of today’s Fiscal Statement, the Chancellor has made the following announcements which will be of particular interest to this committee.

Energy prices

  • The Energy Bill Relief Scheme for non-domestic users will be a temporary six-month scheme to provide a discount on wholesale gas and electricity prices for businesses, charities, and public sector organisations.
  • The Energy Price Guarantee (EPG) will cap the unit price that consumers pay for electricity and gas. An additional payment of £100 will be provided to compensate those not able to receive support for heating costs through the EPG. This will be in addition to the £400 support all households will receive from the Energy Bills Support Scheme.
  • The Government will temporarily cover environmental and social costs, including green levies, currently included in domestic energy bills for two years.
  • £40 billion Energy Markets Financing Scheme to provide a backstop source of liquidity to energy firms from volatile energy prices through a 100% guarantee delivered via commercial banks from 17 October.

Energy efficiency

  • The Government will open applications for up to £2.1 billion over the next two years to support local authorities, housing associations, schools, and hospitals invest in energy efficiency and renewable heating.
  • Legislation will be brought forward to implement new obligations on energy suppliers to help customers reduce energy bills.

Energy resilience

  • Energy Supply Taskforce to negotiate long-term agreements with major gas producers.
  • The North Sea Transition Authority will launch a new oil and gas licensing round.

Net Zero

  • The Government has asked Rt Hon. Chris Skidmore MP to chair an independent review into how to deliver Net Zero commitment while maximising economic growth and investment, supporting energy security, and minimising the costs borne by businesses and consumers. The Chair will report by the end of 2022.

Summary:  Chancellor announces new Growth Plan with biggest package of tax cuts in generations – GOV.UK (www.gov.uk)

Full documents along with Annexes:  The Growth Plan 2022: documents – GOV.UK (www.gov.uk)

 

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Baachu/ GROWTH PLAN 2022 – ENERGY

As part of today’s Fiscal Statement, the Chancellor has made the following announcements which will be of particular interest to this committee. Energy prices The Energy

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