The Energy Bills Discount Scheme
Data Energy
Energy Solutions for Residential Property Managers: Metering & Billing, Data Collection & Energy Procurement
Following the launch of the Energy Bill Relief Scheme (EBRS) in October 2022, businesses have been left wondering what support, if any, will be available once the scheme ends on 31 March 2023.
On 9 January 2023, it was confirmed that further support will be available to businesses, charities, and the public sector through the Energy Bills Discount Scheme (EBDS). The new scheme will come into force from 1 April 2023, and will remain in place for a whole year, until 31 March 2024.
We understand that the EBDS will work quite differently to the support provided under the current EBRS. Here, we have summarised our understanding of how the new scheme will support non-domestic energy customers.
WHO IS ELIGIBLE?
As with the current scheme, support will be available for all non-domestic customers, including UK businesses, voluntary sector organisations (such as charities) and public sector organisations (such as schools and hospitals).
The EBDS will be available to all non-domestic customers who are:
WHAT IS THE NEW DISCOUNT?
Businesses can expect to receive a per-unit discount to their energy bills, for consumption between 1 April 2023 and 31 March 2024.
As with the EBRS, customers do not need to apply for the discount. Energy suppliers will automatically apply a discount to the bills of customers that qualify for the scheme.
Unlike the current scheme, businesses will only receive a discount when wholesale energy prices go over a certain price threshold. These parameters have been set as:
Scenario 1 - Electricity:
A maximum discount of ￡19.61/MWh when wholesale prices are above ￡302/MWh.
Scenario 2 - Gas:
A maximum discount of ￡6.97/MWh when wholesale prices are above ￡107/MWh.
The total discount received will reflect the difference between the relevant wholesale price and the price threshold. For example, if the wholesale price for an electricity contract is ￡320/MWh, that business will be entitled to a discount of ￡18/MWh (or 1.8p/kWh).
领英推荐
Relevant wholesale price ￡320
Threshold wholesale price ￡302
Total discount ￡18
HOW DOES THIS COMPARE TO THE EBRS?
Under the new scheme, the unit discount received is subject to a wholesale price threshold, meaning that if wholesale prices stay below the threshold, no discount will apply. This therefore takes some customers out of scope for support where they were previously receiving it.
Under the current scheme, the government supported price is set at ￡211/MWh (21.1p/kWh) for electricity and ￡75/MWh (7.5p/kWh) for gas.
PASS THROUGH REQUIREMENTS FOR HEAT NETWORKS
As with the current scheme, Heat Suppliers in receipt of the EBDS must pass on the benefit of reduced prices to their end customers (both domestic and non-domestic) and provide information on how they will do this.
We recommend you refer to this document for more information on the requirements that apply.
GET IN TOUCH
It’s important to stress that energy brokers do not have any influence over the unit cost reductions applied under the scheme. If you are currently out of contract and have been waiting for details of the support available, the government advice is to enter a new fixed term contract as normal.
Our team will continue to monitor announcements from the government and will provide updates across our website, LinkedIn and Twitter.
For further information or support please contact your Energy Manager in first instance.
Alternatively, please contact the team on 01279 810 120 or at [email protected].