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Businesses across Great Britain will see the Government pick up nearly half of their soaring energy bills to ensure they do not go bust, ministers have announced on Wednesday, September 21.

The wholesale cost of gas and electricity will be slashed for companies under a Government scheme which will run for six months starting in October.

The Government will cap the wholesale price paid by non-domestic customers, which include schools and charities, it was confirmed on Wednesday,

The “supported wholesale price” is expected to be £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas.

Business Secretary Jacob Rees-Mogg has set out details of a major Government support package for businesses. Picture: PA.

This is around half the expected wholesale price on the open market, and equivalent to the cap on household energy bills that will be set this October and run for two years.

Chancellor Kwasi Kwarteng said: “We have stepped in to stop businesses collapsing, protect jobs and limit inflation.

“And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.”

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

A Government support package for businesses has been announced to ease the pain of soaring energy bills through the winter. Picture: PA.

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.

Cost of Living: Government to pick up half the tab for business energy bills