GOVERNMENT’S ENERGY BILL RELIEF SCHEME (EBRS)

The government announced on 21 September 2022, that it would be protecting businesses from rising wholesale energy costs with its Energy Bill Relief Scheme (EBRS) and full details can be found on the gov.uk website, but we have compiled a list of FAQs to help you navigate this new scheme.

Who is eligible for the Energy Bill Relief Scheme (EBRS)?

All businesses, charities and public sector organisations are eligible for the scheme who have:

• Signed a fixed price contract on or after 01/12/2021
• Purchased tranches of energy on a flexible contract on or after 01/12/2021
• Defaulted onto deemed / out of contract or variable tariffs

Who is excluded from the Energy Bill Relief Scheme (EBRS)?

Businesses that are currently in a fixed price contract signed before 01/12/2021 or businesses that use gas or electricity for the purpose of generating power, which is then sold back into the grid, such as power stations, pumped hydro or grid-level battery storage.

How do I apply for Energy Bill Relief Scheme (EBRS)?

No application is required. Your supplier will automatically discount the applicable amount from your bill if you meet the eligibility criteria.

When will I receive the discount under the Energy Bill Relief Scheme (EBRS)?

Suppliers will start to implement the discount on all eligible customer invoices from November against energy consumed between 01/10/2022 and 31/03/2023. The discount will show as an additional row on your bill and will be applicable to all units of energy consumed during this period regardless of whether it was day, night or evening/weekend usage.

How much is the discount under the Energy Bill Relief Scheme (EBRS)?

The government deemed that wholesale prices exceeding 21.1p p/kwh for electricity and 7.5p p/kwh for gas were excessive. The discount will bridge the gap between the wholesale price on the day you signed your contract and this price point. The exact amount of the discount will vary based on the wholesale market price on the day you signed your contract, to find out the exact discount you will receive reference the gov.uk website.

What will happen if I am not in a contract?

For businesses that are not in a contract, you will be eligible for a maximum discount of 34.5p p/kwh for electricity and 9.1p p/kwh for gas. As many suppliers use out of contract rates / deemed rates / variable price plans as a deterrent and set the rates above the market price, the majority of business will benefit from entering into a contract vs staying out of contract. Contact Us to discuss the individual requirements of your business.