EBDS Registration Portal Now Open for Heat Networks & ETIIs

From 26 April 2023, the government has launched their registration portal for businesses to apply for additional levels of support under the EBDS scheme. The portal will be open for businesses to submit their application within 90 days from 26 April 2023.


EBDS Outlined

As you may be aware, the Energy Bill Relief Scheme (EBRS), which supported businesses from October 2022 to March 2023, is being replaced with the Energy Bills Discount Scheme (EBDS) from the start of April 2023. This scheme aims to provide support to businesses from 1 April 2023 to 31 March 2024. Further details on the new EBDS Scheme can be found here.

The scheme comes with three bands of support to allow businesses within energy-intensive industries or heat networks to access a higher level of support for vulnerable industries.

The EBDS Baseline discount provides some support with energy bills for eligible non-domestic customers in Great Britain and Northern Ireland.

  • The EBDS baseline discount is notably lower than the previous EBRS discount.
  • This support will be available to most business and is applied automatically.

The Energy and Trade Intensive Industries (ETII) discount provides a higher value of support to industries highly reliant on energy use.

  • An organisation is considered eligible for ETII support if at least 50% of its revenue is generated from UK based activity within an eligible sector.
  • A list of qualifying energy intensive industries can be found here.
  • This support must be applied for via the EBDS portal.

The Heat Network discount provides a higher value support for heat networks with domestic end users.

  • Most housing associations, charities & councils will fall in this category. More information can be found here.
  • This support must be applied for via the EBDS portal.


EBDS Process

Organisations are expected to apply for any discount they may qualify for within 90 days from 26 April 2023 via the EBDS portal.

  • Examples and information on the data required to make applications to the portal can be found here.
  • Templates provided by BEIS to assist with applications can be found here.

Once an application has been submitted via the BEIS portal, the government will then assess eligibility and liaise directly with your supplier, who will then apply the discount at the point of billing.


Further Assistance

If organisations cannot apply online, they are encouraged to notify their Executive Relationship Manager/Account Manager for assistance or contact the Government’s EBDS Customer Support team via the details below:

Email: support@ebds.beis.gov.uk

Telephone: 030 0400 5251 (9am-5pm Monday to Friday)


Update on EBDS and the ETII Discount

We wanted to provide you with an update on the Energy Bills Discount Scheme (EBDS), which was announced earlier this year by the UK government. As you may know, EBDS is expected to replace the Energy Bill Relief Scheme (EBRS) from 1 April 2023 and will run for 12 months, where the new scheme is set to come into force on 26 April 2023.

We’ve listed more information about the update on EBDS and the Energy and Trade Intensive Industries (ETII) discount below.


What is the EBDS Scheme?

The EBDS is a scheme created by the UK government to provide discounts on energy bills for eligible non-domestic customers in Great Britain. Once the new legalisation has been approved, discounts will be applied from 1 April 2023. The scheme comprises three different parts:

1. Baseline Discount

This discount will provide eligible non-domestic customers with an energy discount automatically applied to invoices.


2. Energy and Trade Intensive Industries (ETII) Discount

This will provide a higher level of discount to businesses in qualifying sectors. Customers will need to register to receive this discount.


3. Heat Network Discount

This will offer a higher level of discount to heat networks with domestic end users. Customers will need to register to receive this discount.


Additional Support for ETII

The new scheme offers non-domestic customers operating primarily in sectors identified by the government as the most energy and trade-intensive with a higher level of discount. For businesses that may be eligible for the ETII discount, you will need to provide:

  • Organisation information
  • Name of energy supplier
  • Relevant energy supply contract references (such as your account number)
  • Meter point references (MPANs and MPRNs)

We encourage you to check your eligibility on the government website, here.


Portal Opening Date

The government will be opening a digital portal to apply for the higher discount in the near future. We are aware that the portal opening date is still uncertain at this time, and we will keep you informed as soon as we have more definitive information.


Application Process

It is important to note that businesses will have three months from the scheme’s opening date to apply for the higher discount. The government will determine eligibility based on the application, and may require additional information, such as Companies House information and eligibility for other support schemes, to validate eligibility.


How can EIC help?

At EIC, we are committed to providing you with the best service and support for all your EBDS needs.

If you have any questions or concerns regarding the updates mentioned, please do not hesitate to contact our dedicated team of experts.



Winter Energy Review: Warm Temperatures and Wind Power Dominate

The winter has seen a huge shift in the outlook for the gas and power markets, with concerns about the security of supplied trumped by the very warm temperatures seen in Europe and very strong wind generation.

The UK has actually seen temperatures this winter that are similar to last year, with the average London temperatures only 0.1 degree different over the six months of winter. However, temperatures on the continent have been considerably higher than normal, with averages temperatures in Austria 1.2 degrees above the previous year and 1.8 above the normal. These higher temperatures have reduced consumption with an average drop across the EU of 19% below the ‘Save Gas for Winter’ target of a 15% reduction.

This has left Europe with a lot more gas in store at the start of the summer, reducing the need for injections this summer. However, this is a midterm boon but does little to replace the gas which has been lost to the system with only minimal Russian flows into Europe.


Peak, Average Peak and Average Demand

In the UK, the winter was characterised by generally warm and windy conditions with a few cold snaps that were also windless. The cold windless spell was the issue that was most likely to test the UK system, and the doomsday scenario that could lead to blackouts. The UK experienced these conditions for a week in December and having survived this test, the market has been falling ever since.

The winter has thrown up a few interesting observations. First looking at demand, the December cold snap produced the highest demand in three years. While this peak was an outlier, the trend is clear with a considerable drop in average demand and drop in peak demand.



The magnitude of the cold peaks is also decreasing with fewer peaks over 43GW than ever before, with just 11 peak demands over 43 GW compared to 32 in Winter 2021. The extreme prices are evidently going some way to reduce demand.


Average Hourly Generation

While demand reduction has been a major boost this winter, the supply make up has also seen some big changes with more wind generation than ever before, producing 32.4% of electricity this winter.



The large increase in wind generation is due to the increase in installed capacity, as average wind speeds were below last winter’s levels. There was a small decline in gas fired generation which reduced gas usage in power generation by 3% on the previous year. Interconnector flows were lower as in October and November saw net exports, until the UK gas price discount to the continent was erased, and the UK stopped producing power to send to the continent. Since December, Interconnector flows have been 20% higher than last winter.


Gas Supply and Demand Breakdown

On the gas side, the main reduction has come in gas demand. There has been a considerable reduction in Local gas demand, which as temperatures across the whole six month period are largely similar, must predominantly be driven by consumer behaviour.



This consume behaviour is also apparent in the halving of Industry demand in the last two years. The other factor seen in Gas demand is that two years ago, we took gas from the continent and this winter, we supplied 40mcm/d of gas a day on average into the continent.



The gas was available because the UK was getting much more gas from LNG, this has come due to the UKs plentiful import capacity due to its three terminals. This has enabled LNG supply to rise considerably and there be enough gas to send into the continent.


Energy Prices

The high prices seen at the end of the summer, coupled with milder weather and increased wind generation, saw significant demand reductions over the winter. As the season progressed, this lower demand and strong LNG arrivals across Europe saw prices, which had been moving lower since late August, fall significantly at the end of 2022 and continue into this year.



Gas storage in Europe remained significantly higher than the previous winter and French nuclear generation levels also increased. As we ended the winter season, European gas storage remained at over 55% of capacity, meaning that over 300TWh less gas will need to be injected into storage this summer compared to last year.

In recent weeks, the downward trajectory has slowed as buying interest has returned. News of further potential issues with French nuclear generation provided support in March and more recently colder weather forecasts for early April, and production cuts by OPEC have seen prices rise from this years lows seen in March.

Triad Results 2022/23

It’s the end of the Triad as we know it

National Grid have published the three Triad dates for the 2022/23 season, which are listed in the table below. It was the first time a Triad fell on a Friday since 2013, which was missed by all suppliers due to the low peak demand forecast issued by National Grid.

There was a slight increase in the number of Triad calls this year, with EIC issuing 23 alerts in total. This compares favourably with other suppliers who called an average of 28 alerts across the Triad period.

Triads are three half-hour periods, with the highest electricity demand, between the start of November and the end of February. Each Triad must be separated by at least 10 clear days. This means consecutive days of high demand won’t result in multiple Triads.

Previously, consumers were able to lower their final transmission costs by responding to Triad alerts and reducing demand. However, this winter was the last one to benefit fully from Triad avoidance as, from April 2023, transmission charges will mainly be determined by a series of fixed charging bands.


Fall in average demand due to high prices

While maximum demand remained at a similar level to the last few years, average peak demand fell by 2.4GW or 5.8% from last winter. The drop in average demand was mainly due to the record high electricity prices seen over the winter, as businesses and households were more conscious about reducing demand.

Most of the winter saw above seasonal normal temperatures which also helped to subdue demand. However, December and January both experienced long cold spells which supported a rise in peak demand. The maximum demand for the winter occurred on 15th December at the end of ten consecutive days of sub-zero temperatures.

Friday Triad takes forecasters by surprise

The third Triad fell on a Friday for the first time since 2013 and was missed by all suppliers, as National Grid’s peak demand forecast was around 1.2GW lower than the outturn. Over the winter, there were 39 weekdays with a higher peak demand forecast than 2nd December. This means that 40 Triad alerts would have been required to hit all three Triads, which translates to an alert issued on 47% of weekdays.

Considering the first three weeks of November were very mild with no Triad alerts, hitting all three Triads would have required an alert to be issued on 56% of weekdays between 21st November and the end of February. When the Christmas period is removed this figure increases to 62%.

This highlights the faults in the current Triad methodology and supports Ofgem’s Targeted Charging Review (TCR) decision to move the residual element of TNUoS costs to a fixed charge. This will allow for customers to be charged more accurately for their impact on the electricity network, provided that their capacity is set at an appropriate level.


What next for Triads?

From April 2023, TNUoS charges will mainly be determined by a series of fixed charging bands. There will be a small locational element (Triad) remaining but this only applies to around half of the DNO areas, located predominantly in the south. The graph below shows that for a typical low voltage site in charging band 1, the Triad element makes up less than 20% of the total TNUoS charge, where applicable.

For the majority of consumers, the TCR changes will lead to a reduction in transmission costs. However, sites currently taking Triad avoidance action are likely to face an increase in TNUoS costs from April 2023, as the effect of Triad avoidance is removed. Likewise, sites that have a capacity level set too high are also susceptible to DUoS and TNUoS cost increases, as they are potentially placed in a higher charging band.

The charging bands boundaries in the table below apply to both DUoS and TNUoS tariffs, and have been fixed until the end of March 2026, when the next electricity price controls begin (RIIO-3). However, the charging band a site is placed in from April 2026 will be decided by their average consumption/capacity over a two year period prior to this. It is therefore important to ensure that all of your HH sites have the correct capacity level before this assessment period starts.

How EIC can help

With the confirmation that from April 2023, residual TNUoS charges will be calculated using a capacity based methodology, now is the perfect time to undertake a capacity review on all of your HH sites. EIC’s Capacity Review service is a fully managed end to end offering. We undertake detailed analysis for each of your sites, outline potential savings and offer clear advice on what action you should take. If we find that your capacity can be reduced by more than 50% it may also be possible to apply for an immediate charging band reallocation which could significantly cut your DUoS and TNUoS charges.

EIC can also help you accurately budget and forecast your energy prices with confidence with our Long-Term Forecast Report. Our team of specialists work hard identifying trends, examining historical figures and forecasting for the future. The Long-Term Forecast Report is a valuable tool which illustrates the annual projected changes to your energy bills and calculates your energy spend over the next 5, 10, 15 or 20 years. This allows you to confidently forward budget and avoid any nasty surprises. Whilst we can’t prevent the rise of non-commodity charges, we can ensure you are fully prepared for the increases.

For more information please visit our website:


Energy Bills Discount Scheme (EBDS) & Heat Network Update

With the Energy Bills Discount Scheme (EBDS) replacing the Energy Bill Relief Scheme (EBRS), which will run from 1 April 2023 to 31 March 2024, the BEIS has provided further details following the scheme and heat networks.

We’ve listed more information on this and everything else you need to know about these updates below.

What are the key dates and information?

What is a Heat Network?

A Heat Network is a system that supplies heat (and in some cases, cooling) to multiple buildings from a central source.

These networks are often used in urban areas and can provide an efficient and cost-effective way of heating homes and businesses.

Heat Networks can use a variety of heat sources, including boilers, combined heat and power (CHP) plants, and renewable technologies such as geothermal or biomass.

Heat Networks have become increasingly popular in recent years as they can help reduce carbon emissions by utilising waste heat and renewable sources.

The EBDS provides support for Heat Networks, and it is essential to ensure that all Heat Networks register on the government portal to receive the benefits.

Application on Portal (from the first week of April)

From the first week of April, all Heat suppliers will be required to apply as a Heat network on a government portal.

It is crucial to note that all Heat networks must register, even if they do not receive the discount. Failure to apply will result in a £5,000 fine.

To register, Heat Networks will be expected to provide:

  • Contact information
  • Details of the Heat supplier
  • Heat network details (Address, suppliers, MPAN/MSNs)
  • Signed declaration from a “director of the heat network” (Templates will be provided)

First Discounts received from July-August 23

The government is expecting suppliers to rebill invoices from April to July if a site qualifies for the EBDS discount.

The pass-through requirements are the same as EBRS, and the delivery of the discount is expected to be the same (applied by the supplier to the invoicing).

Customers must be notified of the benefit they receive within 30 days of getting the support.

Equivalent rate

In April, the government will be publishing “equivalent rates.”

If a Heat provider is charging their residents less than the “equivalent rates” for energy, no further discounts or savings need to be passed onto tenants.

Further information

Please note that the wholesale curve & backing data is unlikely to be released before April.

Specific queries or issues can be sent to Arran Mornin at BEIS, but please anticipate a delayed response (arran.mornin@beis.gov.uk).

How can EIC help?

At EIC, we are committed to providing you with the best service and support for all your EBDS and Heat Network needs.

If you have any questions or concerns regarding the updates mentioned, please do not hesitate to contact our dedicated team of experts.



ESOS Phase 3 – Qualification Date has Passed and Compliance is Critical

The qualification date for Phase 3 of the ‘Energy Savings Opportunity Scheme’ (ESOS) was 31 December 2022, meaning if your business is in scope for Phase 3, you must comply with the reporting criteria. Your business will be in scope of ESOS from that date if it has either or both:

  • 250 or more employees
  • An annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million.

What is ESOS?

Large UK firms are required to report on their energy consumption and find potential methods to consume less energy under the ‘Energy Savings Opportunity Scheme’, which is a mandated programme. We are now in Phase 3 of its four-year cycle. If your company falls inside the scope of the plan, you must abide by the rules or risk fines.

What happens if you don’t comply?

Organisations who fail to comply with ESOS regulations or meet the required criteria risk facing financial penalties from the Environmental Agency (EA). The changes to legislation in 2022 have also increased the reporting requirements for Significant Energy Use (SEU) from 90% to 95%.

Additionally, with limited ESOS Lead Assessors available for ESOS Phase 3 compliance, it’s crucial for companies to act now to ensure compliance and avoid potential fines and penalties.

All non-compliance will be made public by the EA on their website, with the amount you were fined. There are different types of non-compliance all with separate breaches and various penalty amounts. These include:

  • Failure to Notify

Any organisations who do not declare they have met with their ESOS responsibilities will be punished since it will compromise the integrity of the programme. Whether or not the organisation has conducted an energy audit, they might still be fined up to £5,000 as well as a daily fee of £500 for each working day they are in violation (for a maximum of 80 days). This amount would be added to any additional penalties as well.

  • Failure to maintain records

Maintaining your records is essential so that you can carry out an energy audit and provide proof of your ESOS compliance. In the event that this is not done, there will be a £5,000 punishment as well as an “amount representing the cost to the compliance body of establishing that the responsible undertaking has complied with the plan,” which must be settled. To correct this violation, the compliance body will provide measures, which must be followed.

  • Failure to undertake an energy audit

The greatest punishment is assessed when an energy audit is not performed because it is a crucial ESOS obligation. It is worth making sure you comply if required since the fine is £50,000 as well as £500 for each working day an organisation is in violation (up to a maximum of 80 days). With a decreased fine of £5,000, new entrants are treated more leniently. Keep in mind that organisation is no longer regarded as a new participant in the ESOS program’s second phase. Additionally, corrective measures (such as doing an energy audit) must still be taken.

  • Failure to comply with an enforcement/penalty notice

Any organisation that disregards a compliance, enforcement, or penalty notice will be subject to this fine. An organisation will be subject to an initial punishment of £5,000 followed by £500 for each day that it is in breach, up to a maximum of 80 days.

  • False or misleading statement

Your ESOS evaluation and report must be factually correct and accurate. The largest penalties, again £50,000, might be expected from an organisation if the EA finds that you made a false or misleading statement.

What should you do now?

The final deadline to complete and submit your ESOS reporting for Phase 3 is 5 December 2023. Your data should be based on a 12-month period that includes the qualification date (December 31, 2022) and ends before the compliance date for ESOS Phase 3 reporting (5 December 2023). It might begin as early as 1 January 2022 and it could finish as late as 4 December 2023. Within that timeframe, any consecutive 12 months are acceptable. This is referred to as your reference period. During then, you need to:

  1. Calculate the overall energy usage of your business

You will need to calculate the total energy consumption of your business, which includes energy needed for industrial operations, building heating and lighting, and transportation fuel. These should be reported in a standard unit, such as pounds sterling or an energy unit like the kWh.

  1. Locate places with high energy consumption

You can classify up to 5% of your organisation’s energy use as “de minimis” under the ESOS regulations for Phase 3. You might decide to exclude a location, an activity, or the use of a certain fuel. You must still have a “significant energy consumption” of 95% or higher.

  1. Review the data

Your report should examine how much energy your business uses and how energy-efficient it is. It should include suggestions for potential improvements to your company’s energy efficiency and include information on their costs and advantages. For more information, please visit EIC Route Zero.

  1. Request that a lead assessor review the report

According to the ESOS regulations, a certified lead assessor is required to review your report. Several situations constitute an exception to this rule:

  • If ISO 50001 certification already covers 100% of your energy use
  • If the company uses less than 40,000 kWh of energy annually

If you have no energy supply (although you will still need to notify the Environment Agency and get a director to confirm this). Before approving it, the corporate directors and the lead assessor should both evaluate your report.

How can EIC help with your compliance needs?

Our carbon team have extensive experience with complex compliance legislation and are dedicated to helping you reach deadlines efficiently. Our Lead Assessors and highly trained Auditors are on hand to assist you throughout your compliance process.

We have assisted over 550 clients with their ESOS journey, and in doing so have identified 4.65 million tonnes worth of CO2 savings. This has meant that our clients have avoided approximately £80 million worth of fines over phase 1 and 2.

Whilst balancing other jobs and responsibilities, schemes may seem like a hassle. Fortunately, EIC can help turn that obligation into an opportunity for your organisation.

Get in touch or call us on 01527 511757 to find out how we can help you start your compliance journey.

Our offices will be closed for the Bank Holiday (Monday 29 August 2022).
If you have a query, please contact us from Tuesday 30 August onwards, and we
will be happy to deal with your query then.