Discover everything you need to know about the Energy Bill Relief Scheme and where to take action
On 21 September 2022, further details of the Energy Bill Relief Scheme (EBRS) were published in response to rapidly rising energy prices for businesses.
Lasting 6 months, the EBRS came alongside the announcement of a new Energy Price Guarantee for households on 8 September 2022. Under these new plans, the Energy Price Guarantee limits the price suppliers can charge customers for units of gas for the next two years from 1 October.
What was announced in the Energy Bill Relief Scheme?
Utilising a similar mechanism to the Energy Price Guarantee, the government will provide a discount on business gas and electricity prices.
Suppliers will apply reductions to the bills of eligible non-domestic customers. Discounts will be applied to energy usage between 1 October 2022 and 31 March 2023 with a government-supported price set at £211 per MWh for electricity and £75 per MWh for gas. This is compared to forecast wholesale prices of £600 per MWh for electricity and £180 MWh for gas. Further details of how the scheme works can be found on the government website.
The scheme will be available to everyone on a non-domestic contract including:
- Businesses
- Voluntary sector organisations, such as charities
- Public sector organisations such as schools, hospitals and care homes
who are:
- On existing fixed price contracts that were agreed on or after 1 December 2021 (amended from the previous 1 April 2022 deadline)
- Signing new fixed-price contracts
- On deemed/out-of-contract or variable tariffs
- On flexible purchase or similar contracts.
A similar scheme has been established in Northern Ireland, providing a comparable level of support. For more information, see the government website.
What do businesses need to do?
You do not need to apply to the scheme. The scheme is automatic, so if you are eligible, there is nothing you need to do.
Suppliers will automatically apply reductions to the bills of all eligible non-domestic customers. The government will then compensate suppliers for the reduction in wh
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