1st April 2023
On the 1st April 2023, the Energy Bill Relief Scheme (EBRS) was replaced by the Energy Bill Discount Scheme (EBDS). Whilst the government will claim they are extending support for businesses, the reality, unsurprisingly, is nothing more than lip service from the political class, as the maximum discount will reduce from 21.1p/kWh to 1.961p/kWh. That’s greater than a 99% reduction in support. Happy April Fools’ Day. Except, it’s not a joke.

Details of the government’s generosity can be found here. 

11th October 2022
Yesterday, Monday 10th October, the government announced some key updates to its Energy Bill Relief Scheme.

 

Customers on existing fixed price contracts that were agreed on or after 1st December 2021 are now eligible for the scheme, provided the wholesale cost published by the government on the day the contract was agreed is more than the Government Supported Price. This has changed from the initial eligibility date of 1st April 2022.

 

The government has released a table of the discount available to all eligible customers from 1st December 2021. This table will be updated weekly with the previous week’s figures included. For example, contracts agreed on the 10th October would receive a maximum discount of 6.78p/kWh (gas) and 48.89p/kWh (electricity), until the 31st March 2023. The government supported prices are 7.5p/kWh (gas) and 21.1p/kWh (electricity). Therefore, if the contract prices agreed on the 1st October were 15p/kWh (gas) and 61.1p/kWh (electricity), the customer would get discounts of 6.78p/kWh and 40p/kWh, respectively; paying 8.33p/kWh (gas) and 21.1p/kWh (electricity). The spreadsheet detailing the discounts is updated every Tuesday (to the Sunday before) and can be found on the government website. FAQs

 

 

A wholesale energy cap for businesses (known as the “Supported Price”) will be introduced limiting the maximum costs to about 21.1p/kWh for electricity and 7.5p/kWh for gas – less than half the wholesale price anticipated for this winter. Supplier charges can be added to the new rates, allowing for competition in the market and more variation in the final delivered unit rate than the household Energy Price Guarantee provided. Further clarity is being sought from suppliers on their approach to these non-commodity charges and how they will impact customers.

 

The package will apply to non-domestic users like businesses, charities and public sector organisations, with a three-month review and potential further relief granted to “vulnerable businesses/sectors”.

 

The planned discounts are set to apply to fixed contracts signed since 1st April 2022 (as well as to deemed, variable and flexible tariffs and contracts) and will last for six months starting 1st October 2022. The savings will be first seen in October bills, typically received in November. As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.

 

Those on default, deemed, or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme. This maximum discount is likely to be around 40.5p/kWh for electricity and 11.5p/kWh for gas, subject to wholesale market developments. Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases. This is why the Government is working with suppliers to ensure all customers in England, Scotland and Wales can switch to a fixed contract/tariff for the scheme’s duration if they wish, underpinned by the Government’s Energy Bill Relief Scheme.