BUSINESS owners have welcomed Liz Truss’ energy bill support package – but questions remain over what happens to struggling businesses when the scheme ends.

The plan caps bills at £211 per MWh for electricity and £75 per MWh for gas.

Small businesses besieged by mounting bills say the support – which the Government says will effectively cut firm’s bills in half this winter – have welcomed the support.

READ MORE

Restaurant owner Daniel Burzotta says he has already seen many businesses go under and worries more may still go bust despite the government intervention.

The owner of Il Pescatore restaurant, in Queens Road, said: “It’s at least something, with many of us worried about how we would make it through the winter.

“It may prevent a major catastrophe this winter with thousands of businesses going under, but we have already seen so many fold this year and more could join them in the coming months.

"And what happens after the six months? Hopefully it gets extended."

Joan Tiney, owner of the Borough Hotel, says businesses in Southend were at extra risk of succumbing to mounting bills due to the city’s seasonal reliance for customers.

“Southend being a coastal city and a summer destination for visitors, which is when we do a lot of our trade, makes this time of year particularly hard for businesses,” she said.

“When you consider the expensive energy bills we are facing, and how many businesses have already closed, any bit of help is better than no help, that is for sure.”

The support a business receives will depend on what kind of contract it has with its energy supplier.

Organisations which signed fixed-price energy deals on or before April 1 this year will see the wholesale part of their bill capped automatically. Those who entered new fixed-price contracts after October 1 will get the same support.

Companies on default, deemed or variable tariffs will be given a per-unit discount, but the amount of support they can get is limited.

The level of support offered to companies with flexible purchase contracts, which include some of the biggest energy users, will also be capped, the Government said.

Denise Rossiter, CEO of Essex Chambers of Commerce, raised questions over what happens to businesses following the six-month scheme.

“For those that will benefit, six months support is not enough to make plans for the future,” she said.

“We now need action to get this saving passed onto business as soon as possible – every day will put some firms closer to the edge and they cannot hang on much longer. 

“Some businesses will still struggle to meet their bills despite this government intervention, the Chancellor must prioritise those firms in his mini-budget on Friday. 

She added: “To truly revitalise our economy for the difficult months ahead then there must be a clear long-term plan that gives business the confidence to grow.”