30 Jan 2023

Energy Bill Discount Scheme

The new energy bill relief scheme for non-domestic customers, beginning in April, has been widely received as less generous than the current provision. Qualifying firms with high energy use will still qualify for some additional relief. Will this change impact your business?

The Energy Bill Relief Scheme currently provides a discount on wholesale gas and electricity prices for all non-domestic consumers. This includes businesses. The scheme came into effect on 1 October 2022, set to run for six months, until 31 March 2023. The new Energy Bill Discount Scheme will run for 12 months from 1 April 2023 to 31 March 2024, and will support non-domestic customers including businesses which 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). The government website has further details on the scale of the discount. There is also information for businesses with very high energy use, who will still be eligible for some additional support, under the Energy and Trade Intensive Industries (ETII) scheme. Companies eligible under the ETII scheme include those involved in the 'manufacture of bricks, tiles and construction products, in baked clay', and 'manufacture of concrete products for construction purposes'. Check whether you are eligible.

If this change is going to significantly affect your business and you would like us to raise your concerns with government where possible, please get in touch via [email protected].

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