Simon Boyd, managing director of John Reid & Sons (Strucsteel) Ltd, said: “The price cap is to be broadly welcomed as it is significantly less than the rate we have been quoted by industry suppliers although it is still an increase of 100% on our current cost.
“On the face of it, it is more bearable although it is incredibly important that the supply chain passes all of the savings on. If so, I am confident that the price cap will prevent an immediate increase over the next six months after which time it is inevitable that more support will be needed unless conditions in the energy market change.”
Simon added: “Certainty is absolutely vital in business and we will be lobbying at the highest level to ensure companies in the most energy intensive sectors which are so important to the national economy and UK plc, such as steel and manufacturing, receive the support necessary beyond the six-months limit of the cap in order to survive, invest and grow.”
- The price cap in wholesale prices is £211 per MWh of electricity, and £75 per MWh for gas for six months from October 1. The scheme is due to be reviewed after three months with an option to extend support for ‘vulnerable businesses’ although it is not yet known which sectors come under the category.
