UK Plans to Reduce Business Energy Rates in Half in Bailout Package

BUSINESS

The government of the United Kingdom is developing a plan which may decrease energy rates for many businesses to 50 percent to put them more in line with what the houses are paying, as the new administration of the United Kingdom to stem the economic damage from rising costs.

This bailout will discount the wholesale price that is incorporated into business energy contracts by fixing it to similar amount charged to households. According to the people familiar with the matter that is around a 50 percent discount for businesses, who have recently fixed their contracts.

These efforts are a part of a 40 billion pound support package being finalized by Liz Truss, prime minister of the United Kingdom in response to an energy crisis that has increased the cost of running factories and keeping the lights on in shops across the United Kingdom.

The small businesses in the United Kingdom are taking drastic steps to contain costs as some energy bills increase  by around 10 times. The discount, that is criticizing from past six months from October 2022, and can be extended, and it will not be straightforward to execute.

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The government of the United Kingdom will publish the discounts needed by suppliers to apply when they send bills to the customers.