Over the past few months, rising costs of energy have been a source of concern for households and businesses alike. Some have had to look at scaling back on investments and cancelling future plans to provide themselves with more financial security. But many have instead been calling on action from the government to address the problem head on. On the 21st of September, our newly appointed Prime Minister, Liz Truss, announced her plan for tackling the energy crisis - but what does this mean for your business?
As of the 1st of October, the government will fix wholesale gas and electricity prices, shielding businesses from crippling costs. Where energy bills are not ordinarily restricted, these will now be capped with the state paying any difference between the cap and what energy companies would otherwise charge. This scheme will apply to all companies with agreed fixed deals at high prices on or after the 1st of April when energy bills began to surge. Businesses on variable and flexible tariffs will also be eligible. You can find out more about eligibility and how the scheme works on the government website.
However, this plan is only set to run for six months, after which the government will switch their focus to vulnerable industries. These industries are yet to be determined and will be set out during a review conducted in three months’ time. Hospitality is expected to be a main feature due to the lingering impact of the COVID-19 pandemic, but other potential industries are otherwise unknown.
During the Prime Minister’s statement, she advised that the government will be creating an ‘energy supply taskforce’ which will focus on accelerating all sources of domestic energy. This taskforce will also review ways to fix underlying problems on supply and affordability as well as reviewing how we can reach net zero in the quickest way possible.
If you’re worried about being able to pay your energy bill, you may be able to arrange a payment plan with your supplier. They may also be able to help by giving you more time to pay or offering you a reduction in payments.
Alternatively, you may want to consider invoice finance as a method of managing your cashflow. With invoice finance, you can free up funds from outstanding invoices which can then go towards paying off your energy bills.
At Optimum Finance, we utilise innovative technology to offer a range of flexible funding solutions, which grow alongside your business. Get an instant estimate for the amount of funding you could access with our finance calculator. Products include invoice discounting and factoring that can boost your cashflow and give you access to a dedicated credit control team.
Email or call us to speak to our experienced team of experts and find out how invoice finance could help your business. We pride ourselves on getting things done quickly and providing access to cash within 24 hours of approval. We are passionate about finding solutions and delivering to clients’ needs.