New ‘Energy Bills Discount Scheme’ for Businesses
UK Government has announced a new ‘Energy Bills Discount Scheme’ for UK businesses, charities, and the public sector from this April.
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 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. For eligible Energy and Trade Intensive Industries, the UK Government is announcing:
- 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 is subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity
For further information please select the following links:
- Energy Bills Discount Scheme for businesses – GOV.UK (www.gov.uk)
- Energy Bills Discount Scheme – GOV.UK (www.gov.uk)
- Energy Bills Discount factsheet – 9th January 2023 – GOV.UK (www.gov.uk)
- 230104_ETII_List_for_gov.uk.pdf (publishing.service.gov.uk)
For help and advice with the cost of living crisis as a business, get in touch with our team on Let’s Talk.