As businesses face the prospect of rising and unaffordable energy prices, below (in the interim) is some information and guidance until we receive further information.
Ofgem has advised businesses to contact their energy provider to discuss options if they are concerned and/or unable to meet the rise in costs, having early discussions could explore the option of making payments more manageable and offer some grace until further announcements are made by government, enabling businesses to stay operational. There is talk of energy provider grants (hardship grants) on the Ofgem website (need to speak to providers individually), it is expected that providers are also waiting on announcements but businesses are encouraged to have those early discussions with their energy provider to see what options they have available to them. Read more at www.ofgem.gov.uk/information-consumers/energy-advice-businesses/getting-help-if-your-business-cant-afford-its-energy-bills.
(extension to the Covid Recovery Loan Scheme) – this has been extended to 2024. This is a loan and not a grant so businesses will have to pay it back. The loan previously was available to eligible businesses that could demonstrate they had been affected by Covid-19, this is now not a requirement. The loan can be used for managing cash flow, so if this was deemed a sensible solution by the borrower it could offer some support to businesses if they meet the eligibility criteria. Read more at www.gov.uk/guidance/recovery-loan-scheme.
Fast, flexible, and scalable, the merchant cash advance is popular with UK hospitality, retail, and leisure businesses. Using the business card payment terminal to access unsecured lending, it’s a possible consideration for businesses with few assets, but a good volume of daily card transactions. With no need to juggle monthly cashflow, repayment is made 'at source' as a percentage of your card revenue. Pay more as business grows, pay less if things are slow (text from Swoop) visit the Government website for more info at www.gov.uk/business-finance-support/merchant-cash-advance-uk.
Read more at energysavingtrust.org.uk/looking-for-energy-efficiency-support-for-your-business.
Read more at www.natwest.com/business/running-your-business/reduce-energy-bills.
Businesses may not be considering any capital spending whilst navigating the energy crisis, however, it may be an option to look at ways of reducing energy costs to implement now and/or either as a future consideration:
Derby and Derbyshire Energy Efficiency (D2EE) – give advice to small and medium-sized enterprises (SMEs) in Derby and Derbyshire on how to reduce energy use and save money (don’t administer grants in our area only Derby City). The website provides hints and tips on ways to reduce energy use, businesses in Derbyshire may be eligible for a free energy visit, read more at www.derby.gov.uk/environment-and-planning/building-control/business-energy-efficiency-advice.
Green Entrepreneurs (Derbyshire County Council) - A £2 million grant fund for businesses, communities and individuals interested in developing skills in the green economy and investing in green energy and carbon reduction schemes, read more at www.derbyshire.gov.uk/business/green-entrepreneurs-fund/green-entrepreneurs-fund.
Contact the team directly on 01773 841496 or email regeneration@ambervalley.gov.uk
