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More support for businesses against the wholesale energy markets

In April 2023 the Government will launch the Energy Bill Discount Scheme (EBDS), which will run for 12 months from 1 April 2023 to 31 March 2024, replacing the current Energy Bill Relief Scheme (EBRS).

What discount is available with EBDS?

EBDS provides qualifying businesses a discount on their gas and electricity unit rates. Discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users in Great Britain and Northern Ireland these maximum discounts have been set at:

– Gas – £6.97 per MWh with a price threshold of £107 per MWh
– Electricity – £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh

Energy Trade Intensive Industries (ETII) businesses, those with a high energy consumption, will get a bigger discount than other businesses and the threshold price is set at:

– Gas – £40 per MWh with a price threshold of £99 per MWh
– Electricity – £89 per MWh with a price threshold of £185 per MWh

Am I eligible for EBDS?

The scheme will be available to everyone on a non-domestic contract including:

– businesses
– voluntary sector organisations, such as charities
– public sector organisations such as schools, hospitals and care homes

who are:

– on existing fixed price contracts that were agreed on or after 1 December 2021
– signing new fixed price contracts
– on deemed / out of contract or variable tariffs
– on flexible purchase or similar contracts

Am I eligible for Further Discount under Energy Trade Intensive Industries (ETII)?

To see if your business is classed as energy intensive click HERE

What if my contracted energy rates are below the minimum threshold?

You’ll not be eligible for a discount if the rates you’re paying are below the minimum threshold.

How does it work?

As with the EBRS, energy suppliers will automatically apply reductions to the bills of all eligible non-domestic customers. But if your business is one of the listed Energy Trade Intensive Industries, then you will have to apply for the discount and provide evidence to your energy supplier. Suppliers will be compensated from the government for the reduction in wholesale gas and electricity unit prices that they are passing onto business customers.

The discount applied to usage from 1st April 2023 and will be deducted off the bill by the supplier in pence per kilowatt hour (p/kWh).

For more information and updates visit the Government website HERE