Research by the FSB found that 28% of small businesses are at risk of having to downsize their operations when the current support package ends and the upcoming Energy Bills Discount Scheme (EBDS) starts next month.

The EBDS scheme limits support to 70% of energy usage and is capped at £5.5bn in government support to avoid exposing the public to further costs in supporting businesses.

While market prices have stabilised for those fixing their contracts now and those on variable tariffs, those who fixed last year will see huge increases as they are locked into a high price before the government’s relief. 

As an example, a pub using 48,000 kWh per year in electricity and 192,000 kWh in gas which signed a new contract in August last year would have received a reduction of £60,000 on its estimated £85,000 annual energy bill under the outgoing EBRS.