The Energy Bill Relief Scheme (EBRS) was introduced last year to provide all non-domestic consumers with a discount on gas and electricity prices. That scheme is now ending on 31st March 2023.
The EBRS is now being replaced by the Energy Bills Discount Scheme (EBDS). This scheme will run from 1st April 2023 to 31st March 2024.
Who is eligible?
Everyone on a non-domestic contract is eligible, including:
- businesses
- voluntary sector organisations, such as charities.
- public sector organisations such as schools, hospital and care homes
who are:
- on existing fixed price contracts that were agreed on or after 1 December 2021
- signing new fixed price contracts
- on deemed / out of contract or standard variable tariffs
- on flexible purchase or similar contracts
- on variable ‘Day Ahead Index’ (DAI) tariffs (Northern Ireland scheme only)
How much will my bills be reduced by?
Your discount will be per unit, subject to a maximum discount and will be applied if wholesale prices are above a certain price threshold. The maximum discounts are:
- electricity – £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
- gas – £6.97 per MWh with a price threshold of £107 per MWh
For sectors that may have considerably high energy prices due to their energy intensive and trade exposure (ETIIs), they will receive a higher level of support. The maximum discounts and price threshold for these sectors are:
- electricity – £89 per MWh with a price threshold of £185 per MWh
- gas – £40 per MWh with a price threshold of £99 per MWh
Please see the full list of businesses in scope within the ETII document.
How do I apply?
As before, suppliers will automatially apply reductions to the bills of everyone that is eligible.
ETII sectors will have to apply for the higher level of support. Details on how to do this will be publsihed by the goverment in due course. Please refer to the EBDS page on the government website for further details.
These examples of savings are provided by the government:
Example 1: A pub
A typical pub uses 16 MWhe of gas and 4 MWh of electricity each month. Under the new scheme, it could receive up to £2,280 of taxpayer funded support in the 23/24 financial year.
Example 2: A small retail shop
A typical small retail store uses 2 MWh of gas and 1 MWh of electricity each month. Under the new scheme, it could receive up to £403 of taxpayer funded support in the 23/24 financial year.
Example 3: A medium sized manufacturing business
A medium sized manufacturer uses 1,600 MWh of gas and 200 MWh of electricity each month. Under the new ETII scheme, it could receive up to £687,120 of taxpayer funded support in the 23/24 financial year.