Navigating the End of Energy Bill Relief Scheme: What It Could Mean For UK Businesses

With the Energy Bill Relief Scheme ending on 31st March 2023 and no other support yet to be announced, UK businesses are facing an uncertain future when it comes to managing their energy bills.

In this blog, we will explore what the end of the scheme could mean for UK businesses and how they can navigate this period of uncertainty.

What the end of the Energy Bill Relief Scheme means for UK businesses.

In January 2023, the government announced it would provide £5.5bn of “transitional support” for businesses over 12 months starting from 1st April 2023. Under this plan, non-dom energy customers, including:

• Charities
• Schools
• Businesses

Will receive an automatic discount of:

• £6.97 per MWh for gas
• £19.61 per MWh for electricity

But here’s the rub.

Businesses with energy costs below £107 per MWh for gas and £302 per MWh for electricity will receive no discount. A major concern for small businesses that will see support with their energy bills disappear completely.

What can businesses do to manage their energy bills?

Whether or not your business will lose support, reducing costs and saving energy is always a great idea. And you can do this by:

• Creating a sustainable energy plan
• Switching off lights and equipment when not in use
• Upgrading to renewable energy sources and energy-efficient equipment

Will the energy bill relief scheme be extended?

Yes, there is a chance, but this is 100% not certain right now.

With the spring budget scheduled for mid-March 2023, there will likely be pressure from business owners and households to extend the end date of 31st March. Rumours suggest the scheme could be extended another three months to the 30th June 2023, but this is unlikely to be announced before the chancellor’s budget.

Energy suppliers have been told to prepare two paths, one for the stop of support and one for continuation for three months.

The Energy Bill Discount Scheme

The Energy Bill Relief Scheme is being replaced by the Energy Bill Discount Scheme, which will also provide discounts on energy bills for eligible businesses. However, there are some differences between the two schemes, including a higher eligibility threshold for businesses to receive discounts and additional support for Energy & Trade Intensive Industries (ETII). 

It is worth noting that while the new scheme aims to provide relief to businesses facing higher energy costs, there will still be challenges ahead. The energy market is inherently volatile, and businesses must find ways to manage their energy consumption effectively to reduce costs over the long term. In addition, it is important to note that the eligibility criteria for the new scheme may still leave some businesses without support, particularly those with energy costs below the thresholds for gas and electricity. 

As such, it is more important than ever for businesses to develop sustainable energy plans and invest in energy-efficient equipment and renewable energy sources. Seeking advice from energy management experts, such as Inteb, can also be beneficial in identifying opportunities to reduce energy consumption and costs. With the right strategies in place, businesses can navigate the challenges of the changing energy landscape and emerge stronger and more resilient in the years ahead.

How does EBDS scheme work?

As with the current EBRS scheme, energy suppliers will automatically apply reductions to the bills of all eligible non-domestic customers, subject to a maximum discount. Eligible customers include those who agree a fixed contract on or after 1 December 2021, are on deemed or standard variable tariffs, or have a flexible supply agreement in place.

The thresholds for all businesses have been raised from:

• 7.7p/KWh to 10.7p/KWh for gas
• 21.1p/KWh to 30.2p/KWh for electricity

· with the maximum discount set at 0.697p/KWh and 1.961p/KWh for gas and electricity respectively

What Inteb can do for your business now

At Inteb, we understand that rising energy costs can put pressure and stress on businesses. That’s why we offer comprehensive energy management services that not only help you save money, but also take the pressure and stress away from managing your energy consumption.

So why not talk to us?

We can highlight where your business is wasting energy so you can cut your energy bills quickly. We will be able to identify inefficient practices and equipment and engage with your key stakeholders by setting targets and raising awareness.  What’s more, our Inteb Renewables service can help you identify the following:

• Sustainable energy options
• Energy-efficient technologies
• Ways to reduce your carbon footprint.
• How to protect your business from volatile energy markets

And if that isn’t enough, we can advise you on obtaining financial help for your plans and prepare your company for future changes in the energy market.

Need help with your energy bills?

Call us now on 0151 601 3476 or email [email protected]