The scheme will apply to energy usage from 1st October 2022 to 31st March 2023, running for an initial six-month period for all non-domestic energy users. Customers do not need to take any action, as the support will be automatically applied to bills. The savings will be first seen in October bills, which are typically received in November.

To administer support, the government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.

The announcement was welcomed, but met with calls for further support action. Andrew McRae, Scotland policy chair for the Federation of Small Businesses (FSB), said the announcement was “hugely welcome” but that “it cannot come a moment too soon.”

He highlighted concerns that there seems to be “no mention of a cap on rises to standing charges” and said: “there are questions about what happens when the six months run out. We can’t have businesses simply falling over a cliff in the spring if this relief is withdrawn.

“Neither can we have businesses who had no choice but to sign up to expensive deals before April left out in the cold. That’s why we are calling for a hardship fund to be created for those who fall outside of the current support, or for whom the current support will be insufficient.

“The ball is now in the energy providers’ court. We expect them to pass on the benefit of this package in full and, as a matter of urgency, provide updated bills and quotes to each small business customer.”

Jonathan Geldart, Director General of the Institute of Directors, said: “This is an important intervention by the government and provides much needed short-term reassurance for the numerous firms that are facing soaring energy bills.”

However, Mr Geldart noted: “Ultimately […] business and government will need to work hand in hand to develop domestic energy sources and reduce consumption and dependency on expensive fossil fuels.”