As businesses fear energy Armageddon, Jacob Rees-Mogg puts forward plan for wholesale price cap on gas and electricity
Businesses have been warning of an energy Armageddon, with those looking to sign new gas and electricity contracts this autumn quoted prices as high as 10 times normal rates. Many have already closed their doors, while others warned they would not be able to continue without government help.
On Wednesday, the new business secretary, Jacob Rees-Mogg, stepped forward with his solution: the government will cap wholesale prices of gas and electricity for businesses, charities and public sector organisations. Electricity prices will be fixed at half what businesses were expecting to pay this winter, but will still be double the cost last October.
