# UK government to cap energy bills for businesses – Bloomberg
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-20
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Government Plans to Cut Business Energy Bills This Winter
Meta Description: Get the latest on the British government's plan to slash wholesale prices in business energy bills this winter, as reported by Bloomberg. Stay informed as
URL: https://financedigest.com/uk-government-to-cap-energy-bills-for-businesses-bloomberghtml

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LONDON (Reuters) – The British government, under newly appointed Prime Minister Liz Truss, plans to cut the wholesale prices that are incorporated into business energy bills this winter, Bloomberg reported on Tuesday.

The report comes ahead of the government’s energy support package for businesses, which is expected this week as the government resumes its duties after a period of national mourning for Queen Elizabeth, who died on September 8.

Earlier reports said that the support package to help businesses facing high energy bills would cost the government roughly 40 billion pounds ($45.4 billion). Truss said in New York on Tuesday that the [cost of the energy](https://www.financedigest.com/top-5-ways-businesses-can-save-on-energy-costs-in-q4.html "Top 5 Ways Businesses Can Save on Energy Costs in Q4") support would be laid out in more detail. A fiscal event is planned for Friday.

The Bloomberg story, which cited people familiar with the matter, said [prices would be capped at about 21.1 pence per kilowatt-hour for electricity](https://www.financedigest.com/swedish-energy-minister-need-to-decouple-gas-from-electricity-price.html "Swedish energy minister: need to decouple gas from electricity price") and 7.52 pence for gas.

The [discounts are set to apply to contracts signed](https://www.financedigest.com/discount-dining-clubs-tastecard-and-gourmet-society-grow-their-offering-as-chimichanga-and-spaghetti-house-both-sign-up.html "Discount dining clubs tastecard and Gourmet Society grow their offering as Chimichanga and Spaghetti House both sign up") since April 1 this year, and would last for six months starting Oct. 1, [according to the report](https://www.financedigest.com/ils-investment-returns-continue-to-outperform-according-to-aon-insurance-linked-securities-report.html "ILS investment returns continue to outperform, according to Aon insurance-linked securities report").

The government’s department for business, [energy and industrial](https://www.financedigest.com/britain-considers-energy-bill-subsidy-for-industrial-firms.html "Britain considers energy bill subsidy for industrial firms") strategy (BEIS) declined to comment on the report.

($1 = 0.8804 pounds)

(Reporting by Muvija M; Editing by Paul Sandle and Emelia Sithole-Matarise)


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