What does the new Energy Bills Discount Scheme mean for UK business owners?
From the 1st April 2023 the Energy Bill Relief Scheme is being replaced with the new Energy Bills Discount Scheme (EBDS), with the replacement scheme providing a discount on wholesale prices of electricity and gas, at a lower discounted rate.
Businesses that are more energy-intensive will get larger discounts than other business sectors, so it is important for rural businesses to understand how this affects them.
How much is the discount?
The Treasury has confirmed that bills will be discounted by:
- up to £6.97 per megawatt hour (MWh) for gas bills
- up to £19.61 per MWh for electricity
Do I qualify?
The scheme is available to all those on non-domestic contracts, including:
- voluntary sector organisations like charities
- public sector organisations like schools, hospitals, and care homes
- on a fixed price contract, agreed on or after 1 December 2021
- signing a new fixed price contract
- on deemed/out of contract or variable tariffs
- on flexible purchase or similar contracts
What do I need to do?
Some businesses will need to apply for the Energy Bills Discount Scheme. Everyone will receive the discount automatically if they qualify. However, to receive the higher discount you must apply and it’s unlikely that many businesses will fall into the higher rate category.
The old scheme protected you from increasing wholesale costs so regardless of the price of your contract you wouldn’t pay more than the government capped wholesale rate. The new scheme is discounted from whatever price you have agreed in your contract.
Where Can I Find More Information?
Troo is offering business owners a free comprehensive guide to the scheme, which can be downloaded here https://www.troocost.com/get-started/
The factsheet also contains a link to the full list of eligible businesses and details of the legislation around the EBDS arrangement.