State of the Energy Market – 23rd March 2022

Daily Updates

With the Chancellor revealing the latest budget yesterday (23rd March 2022), it seems that some of the areas that we were expecting to be tackled have been saved for the Energy Security Strategy that the government is expected to announce soon. We collated the key areas that will be of interest to business consumers:

  1. There is a 5% reduction to fuel duty for the next 12 months.  Although not the double-digit drop announced by a few other European countries, this is an attempt to ease the pain for motorists given the dramatic fuel price increases seen in the last four weeks. This can be seen as being at odds with the government’s net zero ambitions!
  2. An introduction of business rate exemptions for eligible plant and machinery used for on-site renewable and storage equipment.  Also, to support the decarbonisation of non-domestic buildings, a 100% relief for eligible low carbon heat networks will be introduced from April 2022. The Treasury estimates could save businesses over £200m.
  3. Although no announcement was made for making permanent the super deduction tax incentive for plant and machinery introduced in the March 21 Budget, it was mentioned that the Treasury is reviewing options to make this permanent for any green related technologies at the next Budget announcements.

Gas

Wholesale gas prices increased on Tuesday with April 22, closing at 233.60p per therm, up 3.5% on the previous day close.

Electricity

Wholesale power prices fell slightly on Tuesday (22nd March) with April 22 closing at £212.74, down 2.9% on the previous day’s close. 

Get in touch with us to see how your costs will be impacted – We can help you find solutions to mitigate against this.

In other energy related news: