The British government has unveiled a tens of billions bailout plan to help businesses with energy bills this winter, amid rising prices that threaten to close many businesses.

Under the plan, announced in a statement yesterday, the government will cap the wholesale energy prices that fuel gas and power contracts for companies for a period of six months. Next, the review will determine if there is a need for continued support to the target sectors.

The government confirmed that the maximum limit for companies is 21.1 pence per kilowatt-hour for electricity and 7.5 pence for gas, and this would impose a discount of approximately 50% on winter electricity contracts and 25% on gas contracts for the next month, but the exact discount depends on the timing of agreement on the contract. .

The government is trying to protect British companies from the worst effects of energy prices, which have risen since Russia cut pipeline flows to Europe after it imposed sanctions over its invasion of Ukraine in February.

The package, which could cost around 40 billion pounds ($46 billion), comes on top of a separate 130 billion pound scheme to help families with electricity and gas bills.

By Editor

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