You may have seen the recent Government announcement (9th Jan 2023) that explained a change in how businesses and charities will be supported with their bills. As you know, the current scheme is called Energy Bill Relief Scheme (EBRS) and this will change from 1st April 2023 and become the Energy Bills Discount Scheme (EBDS) and this will run until March 2024.
Under the current EBRS scheme, firms get a discount on wholesale gas and electricity prices. The EBRS applies to fixed contracts agreed on or after 1 December 2021, as well as to deemed, variable and flexible tariffs and contracts.
How much will my bills be reduced?
As per the current scheme the government will provide a discount on your gas and electricity unit prices. Eligible non-domestic consumers will now receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024, subject to a maximum discount. The relative discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users in Great Britain and Northern Ireland these maximum discounts have been set at:
- electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
- gas - £6.97 per MWh with a price threshold of £107 per MWh
The government says that the discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold. The discount is phased in when the contract’s wholesale price exceeds the floor price, until the total discount per MWh reaches the maximum discount for that fuel.
Some non-domestic energy users in Great Britain and Northern Ireland are particularly vulnerable to high energy prices due to their energy intensive and trade exposure, (referred to as Energy and Trade Intensive Industries or ETIIs), these sectors will receive a higher level of government support, subject to a maximum discount. The maximum discounts and price threshold for these sectors are:
- electricity - £89 per MWh with a price threshold of £185 per MWh
- gas - £40 per MWh with a price threshold of £99 per MWh
Our E.ON Next Blog will be updated with any news, changes or announcements - please head over these to read more or get information surrounding rising bills and how we can help.
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