Flexible Customer Update - The Energy Bill Relief Scheme


On 21 September the Government announced further details of the Energy Bill Relief scheme. The scheme provides support for non-domestic customers from 1 October 2022 until 31 March 2023. There may be some exclusions to the scheme, for example businesses that use gas or electricity for the purpose of generating power they are selling back into the grid, such as power stations, pumped hydro or grid-level battery storage.


The Support

The Government supported price has been set based on wholesale energy costs. Customers will also have to pay non-commodity costs on top of this. The wholesale price support level is set at:

  • £211/MWh (21.1p/kWh) for electricity
  • £75/MWh (7.5p/kWh) for gas

Customers on variable, deemed rates, flexible contracts and any other non-fixed rate contracts would be subject to a ‘maximum discount’ to be set on 30 September 2022. This is based on expected winter prices of £600/MWh for electricity and £180/MWh for gas. Suppliers will be required to administer the scheme and will automatically apply discounts to the bills of all eligible customers. Customer will not need to apply to enter the scheme. The suppliers will be compensated by the Government. The discount will be applied on a p/kWh basis.

Ongoing Support

  • A review of the scheme will be published in 3 months and this will feed into decisions for continued support beyond March 2023. The review is focussing on identifying the most vulnerable business customers who may continue to receive support from April 2023.
  • The Government is recommending to customers that they use this 6 month period to identify measures to protect themselves against the high wholesale price levels.


Please note that the information above is based on information published by the Government. Suppliers are still digesting how they will deliver this support through bills. Full details published by the Government is available here.



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