Wholesale energy prices for businesses will be capped at ‘less than half’ of the anticipated winter levels under the government’s support package.
The Energy Bill Relief Scheme will offer discounts for all firms for six months from 1 October.
Hospitals, schools and other settings such as community halls and churches will also get help.
Under the scheme, revealed by the Department for Business, Energy and Industry, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months.
Firms do not need to contact suppliers as the discount will automatically be applied to bills and savings will be seen from October’s bills but received in November.
The scheme will apply to fixed contracts agreed on or after 1 April and variable and flexible tariffs and contracts.
Kate Nicholls, CEO of UKHospitality, said: ‘This intervention is unprecedented and it is extremely welcome that government has listened to hospitality businesses facing an uncertain winter. We particularly welcome its inclusiveness – from the smallest companies to the largest – all of which combine to provide a huge number of jobs, which are now much more secure.
‘The government has recognised the vulnerability of hospitality as a sector, and we will continue to work with the government, to ensure that there is no cliff edge when these measures fall away.’