BUSINESS representatives in Dorset have welcomed the new energy price cap, but remain cautious about the future.

Both Dorset Chamber and Weymouth BID, trading as We Are Weymouth, have welcomed the news that the government would be introducing an energy price cap for businesses next month, but have suggested that more could be done.

On Wednesday, September 21, the government announced a package of energy support for businesses, schools, charities and other non-domestic gas and electricity users.

It comes after months of soaring prices and will help businesses get through a tough winter.

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

We Are Weymouth have been urging the government to act on spiralling energy costs fearing that many businesses in Weymouth could face closure as a result of the energy crisis.

Following the announcement this week, Dawn Rondeau, Chief Operations Officer of We Are Weymouth (BID) said: “The 567 levy paying businesses we represent have had a good summer in terms of trading but nevertheless are cautious about the future. The business community welcome the support the government has proposed to protect them from rising energy costs with the promise of providing a discount on wholesale gas and electricity through the Energy Bill Relief Scheme as well as the promise to work with suppliers to reduce wholesale energy costs.

“We are pleased that the new scheme will keep energy bills down from October, providing certainty and peace of mind during the winter months. However, We Are Weymouth want to see more done to support the business community and are campaigning with other BID’s to encourage the government to go further and give 100% rate relief until 31st March 2023 and a reduction in VAT from 20% to 12.5% to give businesses just recovering from Covid a fighting chance. These measures along with the proposed energy discounts will go some way toward protecting our high streets and the economy.”

Dorset Chamber chief executive Ian Girling said: “This cap is welcome and a step in the right direction, but for some businesses it may not go far enough.

“Certainly, it will mitigate the worst impact of the energy costs crisis and give many directors and owners much needed breathing space over the winter months especially as we believe it will be applied at source which means it will be easier to access and involve less red tape.

“But six months will go very quickly indeed and there must be a plan in place for when the cap expires to ensure prices don’t simply revert to where they were before, which would leave many businesses facing a cliff-edge and others unable to survive, especially those in energy intensive sectors.

“Energy costs are just one element contributing to the most economically challenging time since Brexit, with businesses also facing labour supply shortages, supply chain issues and higher costs generally.

“These problems will not disappear and although the price cap is welcome, more support will be needed and I look forward to seeing what further assistance may be provided in the Chancellor’s mini-Budget in Friday.”