Energy Bills Discount Scheme Update January 2023
Yesterday, 9th January the UK Government released details of the financial support that will be available for businesses following the expiry of the current Energy Bill Relief Scheme (EBRS) on 31st March 2023.
The new Energy Bills Discount Scheme (EBDS) will run for 12 months from 1st April 2023 and be available to all non-domestic customers as per below:
Just like the EBRS the new scheme will apply to all business users of energy with contracts agreed on or after 1st December 2021
Discounts will continue to be applied to electricity and gas unit rates via supplier invoices
Relative discount will be applied if wholesale prices are above a certain Price Threshold; calculated as the difference between the wholesale cost of the associated energy contract and the Price Threshold
Maximum discount levels apply
Support for the Public Sector will look as follows:
Electricity Price Threshold of £302 MWh (30.2 p/kWh), Maximum Discount of £19.61 MWh (1.961 p/kWh)
Gas Price Threshold of £107 MWh (10.7 p/kWh), Maximum Discount of £6.97 MWh (0.697 p/kWh)
However, the current wholesale prices are far below the set thresholds, so unless we see an increase in costs this will have minimal impact. Current electricity prices for this winter are approximately £217/MWH and £30/MWH for gas.
If you need anymore information or your contract is due for renewal in April, contact us as soon as possible so we can discuss your options:
0345 4022 461