Businesses, schools, churches and community centres have been offered a lifeline after the government confirmed details of an energy price cap.

The move confirms comments made by Prime Minister Liz Truss when she announced a similar scheme for domestic userstwo weeks ago.

However, while households will see a price cap in place for two years, firms and other groups have been told they will be protected from the worst of the rises for just six months.

The measures, which come into force from October - and therefore to be seen in bills arriving in November - are likely to prevent many organisations from collapsing under the weight of the soaring energy prices.

Non-residential energy bills were previously not subject to the Ofgem-regulated price cap.

And that meant many - especially those who were coming off long-term fixed price deals - were bracing themselves for enormous price rises due to the soaring costs of energy; a result of increased demand and the war in Ukraine.

Earlier this month, Mike Walters, chairman of the Kent Association of Headteachers, warned that average-sized secondary schools were looking at having to juggle budgets to find more than £100,000 extra, annually, to heat and light their buildings. He warned staff redundancies could not be ruled out.

Meanwhile, other businesses were facing the harsh reality of having to close down - unable to afford the previously anticipated price hikes.

The owner of the Kavanagh Cinema in Herne Bay feared his bill would rise 10 times the amounthe had been paying to more than £12,000 a month.

Under the Government Energy Bill Relief Scheme, announced this morning, the wholesale cost of gas and electricity will now be capped for non-domestic customers.

It is expected to be £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas.

This is around half the expected wholesale price on the open market - and equivalent to that introduced for domestic customers.

Chancellor Kwasi Kwarteng said: “We have stepped in to stop businesses collapsing, protect jobs and limit inflation.

“And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.”

Jo James is chief executive of the Kent Invicta Chamber of Commerce - an organisation which represents businesses across the county.

She said: "It's very positive. I think any support we get for business will be gratefully received. The thing that has kept business owners up at night is increased utility bill costs - it has been crippling businesses.

"But how much in reality it means, we're not really sure. We won't know until bills start landing. But it's definitely positive, much-needed news."

Owner of Indian restaurant Sundar Rachana in Rainham, Saif Islam, feared he may have to close his business or raise his pricesand called on the government to provide urgent support.

This morning he welcomed the news that help is coming.

He said: "I very much appreciate the help. It gives all business owners peace of mind for six months. We do not need to worry everyday about how we will survive.

"I think all business owners will appreciate that. It is short but if the problem continues the government has said the support could be extended.

"The most important thing is the government has listened and knows the impact the energy crisis is having on the industry."

Co-Owner of The Dead Pigeon Pub in Rochester, Jamie Clark said his electricity bill had gone from around £6,000 to £42,000 earlier this month and with the hopes of opening up a new site in Rainham he was starting to worry it would be unaffordable.

"It is really difficult for hospitality," he said. "We have high energy usage. There are things people do not even think about such as coolers for drinks which have to be on all the time.

"We have fridges constantly on and a kitchen. We went through and thought about things we could live without which was crazy. We should not have to think about it. We have tried to find ways around it."

Speaking after the news his morning, Jamie added: "This support is massive. I am happy with the news but how long is it going to last. I am happy they are going to look after us but I do think hospitality needs more focus.

"It is a vulnerable industry. Going out and having a meal is a luxury and with increasing prices, people cut back on luxuries. But it is good news."

Steve Chalke, the founder of Oasis Community Learning which has 52 schools across Britain including the Oasis Academy secondary school on the Isle of Sheppeyand the Oasis Academy Skinner Street primary school in Gillingham, gave a cautious welcome.

He said: "This is good news. But we are just working through the details as it is complex and there is a lot more work to do.

"But our initial view is that it will significantly reduce, though not eradicate, the deficit on our utilities budget."

Roland Birks, owner of The Ship Centurion in Whitstable, says if the prices are fixed at 21p per kWh then "that's amazing and we’ll still be able to be here".

"But it’s the long-term that we have to look out for," he added.

"What happens after the six months?

"We only just put our prices up. We held them as long as we could, but we’ve had to put 20p on our prices to compensate for all the high bills.

"We’ll have to see if our customers still come because their bills are going up just as much as ours are.

"Once the locals can’t afford to come out, that’s when it’s really going to hit us, because we survive on locals."

Ed Thomas, owner of Amedea, a Croatian café in Whitstable, fears his business is still going to suffer as customers are still having to tighten their belts.

"I think it’s still going to be a struggle," he said.

"The bills have still gone up and people are coming in less.

"But it's better than it was looking a month ago. It’s important to be grateful for things like this.

"I think some kind of grant scheme would have been better. I know it’s doable after Covid.

"We’re hoping that the relief will get extended for another few months after.

"I’m working even more hours myself to try and save money, luckily I haven’t had to cut anyone’s hours."

Marc Bridgen, owner of The Dog at Wingham pub, near Canterbury, previously warned his energy bills were set to rocket from £30,000 a year to £100,000.

He welcomed the announcement of the cap - but says his electricity costs are still rising by 30%, while gas is twice as much as this time last year.

"I don’t want to appear ungrateful," he said. "We appreciate the support and we know that the government is under immense financial pressure but it doesn’t take away for the fact that all businesses are struggling, especially the hospitality industry.

"I maintain that a reduction in VAT for hospitality will give the industry a real chance of surviving the winter and getting through the cost-of-living crisis."

He says footfall has been falling consistently since March as the cost-of-living crisis has taken hold.

"Basically, we’ve been breaking even for six months and now we only see it getting worse and worse," Mr Bridgen said.

"The industry is really feeling the inflation and on top of that wages have been going up, food and drink prices have gone up, all of our costs have since the beginning of the year have just been going up and up and up.

"It’s been a perfect storm and it’s just incredibly tough on us..."

"Most hospitality businesses I know are struggling to stay alive.

"VAT went back to 20% in March, the national minimum wage went up and the utility bill went up as well.

"It’s been a perfect storm and it’s just incredibly tough on us. We were just starting to turn things around after Covid."

He added: "Instead of us being financially unviable in October, now we’re looking at being financially unviable in March/April.

"This government support is welcome but it’s a short-term fix and what happens after that ends?"

Non-domestic customers on existing fixed-price contracts will be eligible for support as long as the contract was agreed on or after April 1, 2022.

The Government says that provided the wholesale element of the price the customer is paying is above what it is now calling the 'Government Supported Price' (in other words, the price cap), their per unit energy costs will automatically be reduced for the duration of the scheme.

Customers entering new fixed price contracts after October 1 will receive support on the same basis.

Those on what are known as default, deemed or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the supported price and the average expected wholesale price over the six months.

The amount of this maximum discount is likely to be around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments, officials added.

The Government added: "Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases.

"This is why the Government is working with suppliers to ensure all their customers in England, Scotland and Wales are given the opportunity to switch to a fixed contract/tariff for the duration of the scheme if they wish, underpinned by the Government’s Energy Bill Relief Scheme support.

"For businesses on flexible purchase contracts, typically some of the largest energy-using businesses, the level of reduction offered will be calculated by suppliers according to the specifics of that company’s contract and will also be subject to the maximum discount."

Support will automatically be applied to bills and organisations do not need to take action to apply for the discounts.

Prime Minister Liz Truss said: "I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

'Significant cost'

"As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

"At the same time, we are boosting Britain’s home-grown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all."

The Government support comes at a significant cost, however. The domestic price cap is part of a £150billion scheme - this latest scheme for organisations will see that bill go even higher.