Industry Update: Government Launch Energy Bills Discount Scheme

The support, now known as the Energy Bills Discount Scheme (EBDS), will run for 12 months from 1st April 2023 to 31st March 2024. 

The new scheme will be available to everyone on a non-domestic contract meeting the following criteria:   

• On existing fixed-price contracts agreed on or after 1st December 2021 
• Signing a new fixed-price contract 

• On a deemed, out of contract or standard variable tariff 
• On a flexible purchasing contract 
• On a variable ‘Day Ahead Index’ tariff (Northern Ireland only)  

The discount

As per the current scheme, the government will provide a discount on your gas and electricity unit prices which suppliers will automatically apply to your bills; however, the discount is set at levels significantly below the previous levels of support.  For most customers, these maximum discounts are:  

• Electricity – £19.61/MWh with a price threshold of £302/MWh 
• Gas – £6.97 per MWh (20.43p/therm) with a price threshold of £107/MWh (313.59p/therm)  

Additional support for energy-intensive industries 

Some sectors that are more vulnerable to high energy prices due to their energy-intensive nature or trade exposure, will receive a larger sum. This has been set as below:  

• Electricity - £89/MWh with a price threshold of £185/MWh 
• Gas - £40/MWh (117.23p/therm) with a price threshold of £99/MWh (290.14p/therm)  

A list of eligible sectors, known as Energy & Trade Intensive Industries (ETII) can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1128033/230104_ETII_List_for_gov.uk.pdf 

Additional discounts for customers in eligible ETII sectors will not be automatically applied to your bills and you will have to apply for the extra support. The full update from BEIS can be found at: https://www.gov.uk/guidance/energy-bills-discount-scheme 

What to do next

As the higher level of support isn't automatically applied and the overall level of government assistance is reducing, you must act now. This way you can ensure your business receives the full financial help it's entitled to at a point when energy costs continue to be critical for UK firms. Applications are open from the 26th April; find all the details on how to apply here.

If you want to know how this will impact your business or need assistance ensuring you don't miss out on the funding you deserve, speak to one of our experts today. Contact us on 0345 634 9500 or email info@tridentutilities.co.uk.