Energy Bills Discount Scheme (EBDS) & Heat Network Update
What you need to know and what to do next
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.
