Energy Bills Discount Scheme
What do you need to know, and how will it impact you?
The government has announced a new energy support scheme that will replace the Energy Bill Relief Scheme (EBRS): the Energy Bills Discount Scheme (EBDS) which will run from 1 April 2023 to 31 March 2024.
We’ve listed more information on this and everything else you need to know about the new scheme below.
What’s changed with the new scheme?
When does it start?
The discount will be applied from 1 April 2023 to 31 March 2024.
Who does the new scheme apply to?
The new scheme is designed to support businesses, charities and the public sector. These businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.
For eligible non-domestic customers who have a contract with an energy supplier, the new scheme will mean that they will see a discount automatically applied to their gas and electricity bill.
Who qualifies for the new scheme?
The Treasury explained that this will be subject to a wholesale price threshold of £107/MWh for gas £302/MWh for electricity, meaning that businesses facing energy costs below this level will not receive support.
(Please note: the Government supported price has been set based on wholesale energy costs. In addition customers will also have to pay non-commodity costs, which will vary by location.)
How does this compare to the current scheme?
The new EBDS has been designed to offer companies relief on high energy costs by providing more budget predictability and price stability. Companies in energy-intensive industries will receive a greater level of support.
The scheme will assist businesses that have entered into fixed price contracts during a period of high energy prices to manage their costs and provide other businesses reassurance against the possibility of prices increasing again.
How can EIC help?
We are working closely with your suppliers to determine how this new scheme will be implemented and how your business will be affected by these changes.
If you have any questions in the meantime, then please reach out to your Executive Relationship Manager.
