IEA expert responds to Energy Bill Relief Scheme for businesses

Andy Mayer, Chief Operating Officer and energy analyst at free market think tank the Institute of Economic Affairs comments on the announcement of the Energy Bill Relief Scheme

The Energy Bill Relief Scheme replicates the domestic Energy Price Guarantee for businesses.

The government has done well to deliver a comparable scheme quickly, avoiding inconsistency.

But tax cuts and targeted support would have been a more effective solution, encouraging less energy use, while rewarding those who had already invested in energy efficiency.

A better plan would be cutting rates, VAT and payroll taxes for businesses, lowering general taxation for working people, and upping welfare for the vulnerable.

Notes to editors

Further comments by Andy on the Energy Price Guarantee can be read here:

https://reaction.life/energy-price-freeze-risks-prolonging-the-crisis/

https://iea.org.uk/media/energy-price-freeze-is-middle-class-welfare-on-steroids/

Energy Bill Relief Scheme: help for businesses and other non-domestic customers