UK to Halve Corporate Energy Costs... "Price Caps Starting Next Month"

Prime Minister Liz Truss of the United Kingdom
Photo by AP News Agency

[Asia Economy Reporter Jeong Hyunjin] In response to the European energy crisis caused by the Ukraine war, the UK government has decided to support businesses and schools by capping prices for the next six months ahead of winter. It is expected that companies will be able to reduce their energy costs by half, with the UK government projected to invest 4 million pounds (approximately 6.33 billion KRW).

On the 21st (local time), according to Bloomberg News and others, UK Prime Minister Liz Truss stated, "There is a real risk that cafes, pubs, and shops could go bankrupt. We cannot leave this unchecked. This is why the government must take action," announcing the plan.

The UK government will set a wholesale energy price cap for the next six months starting next month. For businesses, the electricity price cap is expected to be 211 pounds per megawatt-hour (MWh), and gas will be capped at 75 pounds. The UK government explained, "This is less than half of the wholesale prices expected this winter."

As a result, in the winter contracts to be made next month, companies will be able to receive about a 50% discount on electricity charges and about a 25% discount on gas charges, Bloomberg reported. Bloomberg also noted, "This support package is expected to involve 4 million pounds and is separate from the recently announced household energy bill support by the UK government."

Currently, the plan is to maintain this until March next year, but Prime Minister Truss added that the support period could be extended for some companies depending on the situation.

Earlier, on the 8th, the UK government announced measures to cap household energy bills at a maximum of 2,500 pounds annually for two years. The household support measures will also take effect starting next month. At that time, the benefits for businesses were said to be announced later.

This content was produced with the assistance of AI translation services.