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HomeInsightsNew 'Energy Bills Discount Scheme' for UK businesses, charities, and the public sector

New 'Energy Bills Discount Scheme' for UK businesses, charities, and the public sector

The government has announced a new energy scheme for businesses, charities, and the public sector ahead of the current scheme ending in March 2023.

The new Energy Bills Discount Scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.

Who is eligible for the Energy Bills Discount Scheme (EBDS)?

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

When does the new Energy Bills Discount Scheme (EBDS) start?

The EBDS will run for 12 months from 1 April 2023 to 31 March 2024.

What support will eligible UK businesses and other non-domestic energy users receive?

  • From 1 April 2023 to 31 March 2024, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.
  • This will be subject to a wholesale price threshold, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing energy costs below this level will not receive support.
  • Customers do not need to apply for their discount. As with the current scheme, suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.

A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries.

Energy and Trade Intensive Industries in scope of the additional support are listed here.

What support will eligible businesses in Energy and Trade Intensive Industries receive?

  • These businesses will receive a discount reflecting the difference between a price threshold and the relevant wholesale price.
  • The price threshold for the scheme will be £99/MWh for gas and £185/MWh for electricity.
  • This discount will only apply to 70% of energy volumes and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.

Read more about the Energy Bills Discount Scheme here.

For one-to-one advice and guidance to support your business, book an appointment with a Growth Hub Connector. Find more guidance on reducing business costs in our cost of living toolkit, here.

You can also sign up to the North East Growth Hub newsletter to make sure you receive the latest information on support for businesses.