If you want to save on your energy bills, then you should compare your costs with us at Business Energy Comparisons. We can provide you with free quotes from the best energy suppliers.
Energy Bill Relief Scheme Explained
Do I Have To Apply For The Energy Bill Relief Scheme?
No, you do not need to apply to receive a discount from the Energy Bill Relief Scheme. You should, therefore, avoid all parties attempting to “help” you receive this discount.
Below we will list how the scheme will apply, depending on the contract that your business is currently on.
Existing fixed price contract
If your fixed price contract that you signed on or after 1 December 2021 is costing you more than the government supported price, then this discount will be applied to your account automatically for the entire duration of the scheme.
You will not receive any discount from the EBRS if your fixed contract currently costs less than the government supported price.
New fixed-price contracts
Non-domestic customers entering into new fixed contracts within the period of the scheme will have the price reduction automatically applied to their bills by their energy suppliers. A discount will only apply if the wholesale unit price is higher than the government supported price.
Default or variable tariff contract
You are still eligible to receive a discount if you are on a default or variable tariff contract; however, as mentioned above, you will be subjected to the maximum discount limit of £345/MWh for electricity and £91/MWh for gas.
This means that if the wholesale prices rise high enough, your energy bill prices will increase. The maximum discount is rigid and will not change regardless of how high energy prices rise, so keep this in mind.
Flexible purchase contract
Non-domestic customers that use the most energy typically make use of flexible contracts. The price reduction that customers will receive on these types of contracts will be calculated by their energy supplier based on the specific details of the company’s contract.
These customers will still be subjected to the maximum discount of £345/MWh for electricity and £91/MWh for gas.
Fixed contract signed before 1 December 2021
If you signed your fixed contract before 1 December 2021, then you will not have been affected by the significant increase in energy costs and will, therefore, not be eligible to receive any discount from the scheme.
If you aren’t currently in a contract and were waiting to see what support the government would provide you before signing one, then you can sign a fixed contract. This makes you eligible to receive the price reduction provided by the scheme.
The energy provided by heat network, landlord, or energy service company
If you don’t pay for your energy bill directly, then you should not expect to see an increase in your energy costs. The government expects businesses and other organisations benefitting from the EBRS to pass these benefits down to the end user in a proportionate way. This will ensure that all UK residents receive relief.
What Does The Energy Bill Relief Scheme Mean For Businesses?
The Energy Bill Relief Scheme will work for non-domestic customers in the same way that the Energy Price Guarantee will work for domestic households.
It will basically protect businesses from receiving the brunt of the energy cost increases that are being experienced globally. This will help many businesses stay afloat and allow many business owners and employees to also benefit from this relief.
Energy prices might be soaring. But you won’t need to worry whether you are a business owner or just a normal consumer. The Energy Bill Relief Scheme and the Energy Price Guarantee will protect you from these exorbitant price increases.
However, while the scheme may help you, it is currently only set to last until 31 March 2023. And there is no guarantee of what will happen after then.
This is why you should consider how much you are actually paying for your energy bills. Here at Business Energy Comparison; we can help you compare business energy suppliers to find the best deal for your business.
You can look at our sectors page and compare the energy costs of your business with other businesses in your sector. This way you can find out if you are getting a fair deal.
Frequently Asked Questions
Both domestic customers and non-domestic customers will receive some form of financial help with their energy bills.
Businesses, public sector organisations, and charities will receive relief from the Energy Bill Relief Scheme. Domestic customers will receive relief from the Energy Price Guarantee, which will save customers around £700 over the course of the winter.
The Energy Bill Support Scheme will provide all homes in England, Scotland, and Wales that have a domestic electricity connection with a £400 discount to help with their energy bills over winter 2022 to 2023.
If you are eligible for any of the energy support schemes, then you will not need to apply, as these discounts should be automatically applied to your account.
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