The Government’s support plans to help both businesses and households cope with the rising costs of energy have been welcomed by the Petrol Retailers’ Association and Association of Convenience Stores.
In the House of Commons today, the new Prime Minister Liz Truss, said: “I recognise that people are struggling with their energy bills and that is why I have brought forward this debate as soon as possible to give people reassurance before this winter that energy bills will be affordable.”
The Prime Minister announced an Energy Price Guarantee which sees a £2,500 annual price cap for two years from start of October 1 for consumers and a new six-month scheme for businesses which will provide equivalent support to that being offered to consumers.
This support scheme for businesses’ will be reviewed in three months’ time to see if the help should be more targeted towards certain industries.
In addition to the cap, a new Energy Supply Taskforce has been created to negotiate long-term energy contracts with domestic and international suppliers of energy.
Gordon Balmer, executive director of the PRA, said: “We are pleased to see the Government’s recognition that businesses will require support to survive the winter.
“While this is a welcome relief, after the six months elapses further support will be needed for our members. The government must recognize that petrol filling stations are vulnerable businesses, vital to the fuel resilience infrastructure in the UK.”.
The PRA will be engaging in dialogue with the Government to ensure that support for petrol filing stations continues after the six months of support elapses. As we have seen during the Pandemic a local filling station is vital for many communities ensuring supplies of food and fuel.
Balmer concluded: “Many of our members are single-site operators who have seen 300% increases in energy costs. If Government support is not maintained in the face of huge energy costs it could mean that many will be forced to close their doors. The independent forecourt network comprises 65% of all forecourts in the UK. Without them, the economy cannot function.”
ACS chief executive James Lowman said: “We welcome the announcement for the support for businesses which is much-needed and long-awaited. We have been calling for a price cap for local shops in line with what we already see in the domestic market. While we are pleased that the Government has taken action to support businesses with their spiralling energy costs, we are clear that help may be needed for local shops beyond the current six-month timeframe.
“Local shops play an essential role in both the economy and to our communities and it is vital that this is considered when reviewing the support that is being offered.”
The Prime Minister also announced two reviews, one focusing on energy regulations to fix ‘underlying problems’ and a second review to ensure net zero is delivered by 2050 in a way that is ‘pro-business and pro-growth’.
Chancellor of the Exchequer Kwasi Kwarteng will set out the expected costs of the energy package later this month in a fiscal event.
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