Guide to the Energy Bills Discount Scheme

What is the Energy Bills Discount Scheme and how will it effect your business?

The Energy Bill Discount Scheme (EBDS) announced by the government in January 2023 will replace the current
Energy Bills Relief Scheme. The EBDS will come into force from 1 April 2023 and run until 31 March 2024. If you have
non-domestic energy contracts, you will be eligible for this support if you are;

  • on fixed price contracts agreed on or after 01/12/21
  • signing new fixed price contracts
  • on deemed/ out of contract or standard variable tariffs
  • on flexible purchase or similar contracts

The discount will be automatically applied by your supplier. While the scheme will discount the cost of non-domestic
energy, the levels of discount are set at a significantly lower level than the last scheme.

A higher level of support is available for businesses operating within Energy & Trade Intensive Industries. This
support is not automatically applied, and eligible businesses must apply. Details for this application process have not
been released, but the EES team will keep you updated with details as they are released.

The full government announcement can be found here: https://www.gov.uk/guidance/energy-bills-discount-scheme

How will the EBDS discount be calculated?

Through the Energy Bills Discount Scheme, the government will provide a discount on your gas and electricity unit
prices in pence per kilowatt hour, if wholesale prices are above a specified threshold.

Your discount will be calculated as the difference between the wholesale price associated with your energy contract,
and the set price threshold. If your contract’s wholesale price exceeds the price threshold, your discount will be
phased until the maximum discount for that fuel type is reached. Maximum discounts and price thresholds 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 businesses operating within Energy & Trade Intensive Industries (ETII), you will be able to apply for a higher level
of support. The maximum discounts and price thresholds for those in ETIIs 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

For reference, under the previous scheme maximum discounts previously only applied to variable, deemed and all
other contracts, and were set at £345 per MWh for electricity, and £91 per MWh for gas. The price thresholds were
set at £211 per MWh for electricity and £75 per MWh for gas.

What does this mean for you business?

As a valued EES customer, please be assured that we are here to support you to access the best pricing and support
available as we weather the storm of the energy crisis. We are in continual communication with all suppliers within
the energy market to confirm how they’ will be interpreting and delivering the new EBDS.

If your business falls within an Energy & Trade Intensive Industry (ETII), it is imperative that you stay alert for the next
announcement regarding the application process for enhanced discount, to ensure that you access the full level of
support available for your business.

We will provide further communication regarding the EBDS and the enhanced support for ETIIs as further details are
announced. If you have any concerns or wish to ask any questions, please do not hesitate to contact our team.

https://www.experiencedenergy.co.uk/  hello@experiencedenergy.co.uk  0121 274 3573