Call for urgent clarity on energy supports for NI businesses
It is simply “unacceptable” that Northern Ireland businesses have been left in the dark over relief for energy bills this winter, Colin Neill has told LCN.
The Hospitality Ulster chief spoke out as Liz Truss’s government unveiled a scheme that will see energy bills for UK businesses cut by around half their predicted level this winter under a huge support package.
The scheme will fix gas and electricity prices for companies for six months from 1 October, in a bid to stop firms facing soaring costs from going bust.
However, while details were spelled out of how the caps will work in England, Wales and Scotland, a parallel scheme based on the same criteria in NI is yet to be outlined.
“It is simply unacceptable that Northern Ireland businesses do not have any detail on how support will be provided,” said Colin Neill. We need urgent clarity on how these measures will be carried forward.
“Thousands of businesses are on the brink with many concerned how they will get through the winter. The cost of energy crisis is a real threat to people’s jobs, livelihoods and businesses. In what should be the beginning of our busiest period, hospitality is instead looking at how to keep the lights on. It is totally unsustainable for business to continue to pay these crippling energy bills as well as contending with a labour shortage and the spiraling cost of other overheads including food and ingredients.
“Further support measures including slashing the VAT rate and a business rates holiday are also urgently required to tackle the cost of doing business crisis. We cannot wait any longer for government intervention. Ahead of the unveiling of the ‘Growth Plan’ by the Chancellor on Friday, direct intervention and support for business in Northern Ireland must be announced and implemented. The hospitality industry will have a third consecutive dark winter without it.
“We have no choice but to wait for much needed clarity which will hopefully provide some short-term relief to the hospitality sector in the coming months. We need to allow our businesses to plan ahead and build back to what once was one of Northern Ireland’s leading economic drivers. We are now in a critical situation and cannot wait for long.”
Under the scheme:
- Wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas.
- Companies do not need to contact suppliers as the discount will automatically be applied to bills, with savings seen from October but received from November.
- The scheme will apply to fixed contracts agreed on or after 1 April, and variable and flexible tariffs and contracts.
