Rising energy prices in the UK are inescapable. They’ve soared to unprecedentedly high levels this year (2022). Thankfully, the introduction of the government’s Energy Bill Relief Scheme at the start of October has provided some respite for many UK businesses, find out more with Business Energy Comparison.
Why Are Energy Prices Rising?
Is There Any Help With Business Energy Bills?
Yes, there is. The Energy Bill Relief Scheme (EBRS) has been introduced to help business energy customers across England, Scotland and Wales manage during this period of uncertainty (for Northern Ireland, the scheme works slightly differently – you can read more about the Northern Ireland EBRS scheme here).
If you have a non-domestic energy contract, you’ll be eligible if you’re…
– a business
– a voluntary sector organisation (i.e., a charity)
– a public sector organisation (i.e., a school or hospital)
– on an existing fixed price contract that was agreed on or prior to 1 December 2021
– about to sign a new fixed-price contract
– on a deemed / out-of-contract or variable tariff
– on a flexible purchase contract or a similar contract
Businesses using their gas or electricity supply to generate power to sell back to the grid aren’t eligible to benefit under the scheme.
The Energy Bill Relief Scheme (EBRS) is essentially a support package that will provide a discount on gas and electricity prices for businesses. Prices have been limited at:
– £211 per MWh for electricity
– £75 per MWh for gas
Demonstrating the level of support being provided, government forecasts have shown wholesale energy costs are expected to be much higher than the government-supported rate:
– £600 per MWh for electricity
– £180 per MWh for gas
How Will the Energy Bill Relief Scheme Work?
Any discount will automatically be applied to any eligible business customer’s bill. The government will then provide the supplier with the difference between the EBRS rate and the rate at wholesale.
If you’re on a fixed contract your discount will reflect any difference between the EBRS price and the relevant wholesale price charged by your supplier on the day your fixed-term contract was agreed.
If you’re on a variable, deemed or another contract type , your discount will reflect the difference between EBRS price and the relevant wholesale price charged by your supplier. However, it’ll be subject to a maximum discount of:
– £354 per MWh for electricity
– £91 per MWh for gas
How Long Will the Energy Bill Relief Scheme Last?
The scheme is currently due to last the whole winter period, running from 1 October 2022 until 31 March 2023.
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