BUSINESSES have cautiously welcomed the government's new scheme to cap their energy bills.

Gas and electricity prices will be automatically fixed at a set rate for all firms for six months from October 1 and the government will foot the bill for any higher costs.

The Department for Business, Energy and Industry's plan will see wholesale prices for all non-domestic energy customers staying at £211 per MWh for electricity and £75 per MWh for gas until April.

Haines Watts Swindon works with many small and medium-sized enterprises in the town and wider Wiltshire.

Managing partner Mike Lloyd said: "This has to be a good thing for business, particularly as interest rates are set to continue rising.

"Whether it is enough will vary from business to business, but the discounts are bringing the costs to business well below current wholesale prices. 

"Is it for long enough? We can only see what happens to the energy markets over the next six months.

"It may well need to be extended over and above the 'at risk' sectors that are already looking set to get longer-term support - but whether it will be is too early to say. 

"Like Covid, it will have to be paid for by this and future generations, and the ability to do that will depend on the strength of our post-Brexit economy."

Business West is the region's Chamber of Commerce and works with dozens of businesses in Swindon, Wiltshire, and the southwest.

Policy manager Clare Ralph added: "Business West welcomes details on the Energy Bill Relief Scheme for businesses across the southwest which provides an element of certainty, for a limited time, on the unit prices that business customers can be charged by their utility providers.

"No restriction has been announced to the standing charge element of non-domestic bills, which look to remain uncapped.

“This support provides businesses vital breathing and planning space to manage cashflow and profitability through the winter months.

"Business West, on behalf of firms across the region, calls on early clarity of longer-term protection the government has promised for vulnerable customers given the potential for a cliff edge on April 1 2023 if this isn’t well targeted.

“We are relieved that firms who attempted to forestall tariffs continuing to escalate by locking in new fixed-term contracts since April 2022 will be covered by the scheme at the same rates.

"This provides timely relief to anxious firms.”