{"id":7396,"date":"2025-12-08T11:29:00","date_gmt":"2025-12-08T11:29:00","guid":{"rendered":"https:\/\/www.goodenergy.co.uk\/business\/?p=7396"},"modified":"2025-12-08T11:30:30","modified_gmt":"2025-12-08T11:30:30","slug":"november-budget-how-does-it-impact-energy-bills","status":"publish","type":"post","link":"https:\/\/www.goodenergy.co.uk\/business\/insights\/november-budget-how-does-it-impact-energy-bills\/","title":{"rendered":"November Budget: How does it impact energy bills?"},"content":{"rendered":"\n<p class=\"is-style-body-l\">As far as energy is concerned, the&nbsp;Autumn Budget landed with a clear political priority: easing pressure on household bills.&nbsp;For&nbsp;business&nbsp;users, the story is more nuanced, with&nbsp;a&nbsp;subtle, yet&nbsp;important&nbsp;shift in how government thinks about policy costs on bills,&nbsp;against a changing backdrop&nbsp;of&nbsp;non-commodity charges&nbsp;that continue to shape what businesses&nbsp;ultimately pay.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"is-style-body-l\">Here\u2019s&nbsp;what was announced, what it could signal next, and what to watch if&nbsp;you\u2019re&nbsp;planning budgets,&nbsp;renewals&nbsp;or decarbonisation projects.&nbsp;<\/p>\n\n\n\n<h2 id=\"a-shift-in-how-energy-levies-are-funded\" class=\"wp-block-heading is-style-typestyle-h3\">A shift in how energy levies are funded&nbsp;<\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow is--inner-block\">\n<figure class=\"wp-block-image size-large is--inner-block\"><img loading=\"lazy\" decoding=\"async\" width=\"2361\" height=\"2362\" src=\"https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1.jpeg\" alt=\"\" class=\"wp-image-7398\" srcset=\"https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1.jpeg 2361w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-300x300.jpeg 300w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-1024x1024.jpeg 1024w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-150x150.jpeg 150w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-768x768.jpeg 768w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-1536x1536.jpeg 1536w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-2048x2048.jpeg 2048w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/B2B-SME_AdobeStock_64903141-edited-1-1500x1500.jpeg 1500w\" sizes=\"(max-width: 2361px) 100vw, 2361px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow is--inner-block\">\n<p class=\"is--inner-block\">For the very largest businesses, there was an announcement prior to the budget that introduced a new scheme called the<a href=\"https:\/\/www.gov.uk\/government\/consultations\/british-industrial-competitiveness-scheme-consultation-on-scheme-eligibility-and-approach\">British Industrial Competitive Scheme<\/a>. <\/p>\n\n\n\n<p class=\"is--inner-block\">This will reduce energy costs for around 7,000 of the\u00a0highest\u00a0electricity users by exempting them from the costs of the Renewables Obligation (RO), Feed-in Tariff (FIT)\u00a0and the Capacity Market (CM)\u00a0subsidies, estimated to be worth a total of \u00a335-\u00a340\/MWh.\u00a0\u00a0<\/p>\n<\/div>\n<\/div>\n\n\n\n<p>There are changes in how levies are paid in household bills too.&nbsp;The end of the Energy Company Obligation (ECO), and the part-funding of the Renewables Obligation (RO) by the Treasury,&nbsp;will remove around <a href=\"https:\/\/www.gov.uk\/government\/news\/what-does-the-autumn-budget-mean-for-your-energy-bills\">\u00a3150 per year <\/a>from&nbsp;domestic&nbsp;bills.&nbsp;&nbsp;<\/p>\n\n\n\n<p>These changes might not&nbsp;impact&nbsp;most&nbsp;businesses&nbsp;energy bills&nbsp;directly. However,&nbsp;they&nbsp;mark a shift in&nbsp;the&nbsp;Treasury\u2019s appetite for bringing levy costs into general government spending, where they can be funded more progressively by the taxpayer, and not the billpayer.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow is--inner-block\">\n<p class=\"is--inner-block\">A more explicit reference to that possibility could be found\u00a0in the\u00a0accompanying\u00a0fine print. <\/p>\n\n\n\n<p class=\"is--inner-block\">The government reiterated their focus on bringing down energy bills for households and businesses, and \u2018will subject any additional costs, including new levies, to enhanced scrutiny under a new framework to ensure they\u2026 do not impose unnecessary costs on [energy users].\u2019\u00a0\u00a0<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow is--inner-block\">\n<figure class=\"wp-block-image size-large is--inner-block\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/AdobeStock_806267100-1024x683.jpg\" alt=\"Sizewell B Nuclear energy site\" class=\"wp-image-7399\" srcset=\"https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/AdobeStock_806267100-1024x683.jpg 1024w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/AdobeStock_806267100-300x200.jpg 300w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/AdobeStock_806267100-768x512.jpg 768w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2025\/12\/AdobeStock_806267100.jpg 1080w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p>We think this is incredibly important.&nbsp;Good Energy has long advocated&nbsp;for the removal of&nbsp;levies from bills,&nbsp;specifically when&nbsp;doing so can help&nbsp;reduce electricity&nbsp;costs&nbsp;relative&nbsp;to gas.&nbsp;This&nbsp;encourages&nbsp;homeowners&nbsp;and businesses to&nbsp;electrify their heating and&nbsp;transport and&nbsp;consequently&nbsp;reduce&nbsp;their&nbsp;total&nbsp;energy emissions.&nbsp;&nbsp;We will continue to&nbsp;push the government on this issue,&nbsp;especially at a time when&nbsp;non-commodity costs&nbsp;threaten&nbsp;to rise&nbsp;in the form of increased transmission system charges and a new <a href=\"https:\/\/energyadvicehub.org\/understanding-the-nuclear-rab-levy-a-new-charge-on-energy-bills\/\">\u2018Regulated Asset Base\u2019 levy <\/a>to fund&nbsp;new nuclear site,&nbsp;Sizewell C.&nbsp;<\/p>\n\n\n\n<h2 id=\"new-measures-on-evs\" class=\"wp-block-heading is-style-typestyle-h3\">New measures on EVs&nbsp;<\/h2>\n\n\n\n<p>Beyond energy bills,&nbsp;the government announced a raft of measures on&nbsp;EVs. These include&nbsp;additional&nbsp;investment in charging infrastructure,&nbsp;business rates relief for eligible EV charge&nbsp;points, and&nbsp;an&nbsp;extension of the&nbsp;100% first year allowances for zero emission cars.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow is--inner-block\">\n<figure class=\"wp-block-image size-large is--inner-block\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-1024x683.jpg\" alt=\"EV for business\" class=\"wp-image-790\" srcset=\"https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-1024x683.jpg 1024w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-300x200.jpg 300w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-768x512.jpg 768w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-1536x1024.jpg 1536w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-2048x1365.jpg 2048w, https:\/\/www.goodenergy.co.uk\/business\/wp-content\/uploads\/sites\/2\/2022\/12\/lee-searle-4-1500x1000.jpg 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow is--inner-block\">\n<p class=\"is--inner-block\">However, businesses with EV fleets will have noted the\u00a0confirmation of a <a href=\"https:\/\/www.bbc.co.uk\/news\/articles\/c8jw9l7gx92o\">new mileage charge<\/a>. This will be\u00a0introduced\u00a0from\u00a0April 2028 and\u00a0set at\u00a03p\/mile for EVs and\u00a01.5p\/mile for plug-in hybrids\u00a0\u2013 lower than fuel duty\u00a0in most cases\u00a0(which has been frozen for a further\u00a012 months) but\u00a0a new\u00a0charge,\u00a0nonetheless.\u00a0<\/p>\n<\/div>\n<\/div>\n\n\n\n<p class=\"is-style-body-l\">Overall, the outlook is mixed.&nbsp;While the Budget&nbsp;didn\u2019t&nbsp;directly cut costs for most businesses, it&nbsp;demonstrated&nbsp;that&nbsp;policy costs on bills are now under sharper scrutiny.&nbsp;That could bode well for the future, but&nbsp;it\u2019s&nbsp;clear that businesses will&nbsp;benefit&nbsp;from staying proactive&nbsp;in the near-term.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"is-style-body-l\">That\u2019s\u00a0where Good Energy comes in. Our <a href=\"https:\/\/www.goodenergy.co.uk\/business\/products\/\">renewable energy tariffs <\/a>and innovative <a href=\"https:\/\/www.goodenergy.co.uk\/business\/hourly-matching-credit\/\">hourly-matching products<\/a> can help your business start saving money\u00a0today.\u00a0And with <a href=\"https:\/\/www.goodenergy.co.uk\/business\/commercial-solar-panels-for-businesses\/\">commercial solar<\/a> and <a href=\"https:\/\/www.goodenergy.co.uk\/business\/commercial-heat-pumps\/\">heat pump <\/a>installations, we can help you cut your energy bills and carbon footprint long into\u00a0the future.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As far as energy is concerned, the&nbsp;Autumn Budget landed with a clear political priority: easing pressure on household bills.&nbsp;For&nbsp;business&nbsp;users, the&hellip;<\/p>\n","protected":false},"author":17,"featured_media":7252,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13],"class_list":["post-7396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>November Budget: How does it impact energy bills? 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