Our official energy partners Experienced Energy Solutions are highlighting the incoming Government Energy Bill Relief Scheme which will come into effect from the 1st October
WHAT IS THE ENERGY BILL RELIEF SCHEME?
From 1 October 2022, the Government's Energy Bill Relief Scheme (EBRS) will come into force for six months.
This will provide a discount on energy bills for non-domestic customers, by reducing wholesale energy costs.
THE EBRS DISCOUNT
To calculate your discount, the wholesale portion of your estimated unit price will be compared to a baseline ‘government supported price’. This has been set at:
21.10p p/kwh hour for electricity (£211 per megawatt hour (MWh))
7.5p p/kwh for gas (£75 per MWh)
Your supplier will apply a reduction in pence per kilowatt hour (p/kWh) to your bills to meet this baseline, which will then be reimbursed to suppliers by the Government.
If you are on a fixed contract - your discount will be based on the variation between the 'government supported price' and wholesale prices on the day that your contract was agreed.
If you are on a variable, deemed or other contract - your discount will be based on the variation between the 'government supported price' and wholesale prices, but will be subject to a 'Maximum Discount' which is to be announced on 30 September
The support will be automatically applied to all eligible bills for energy usage from October 2022, so you do not need to take any action. You will therefore see the reduction in your October energy usage, the invoice for which you will most likely receive in November. It is important to stress that the above government supported prices are commodity only and for all budgeting purposes you will need to also take into account the non-commodity prices.
While the EBRS is based on the wholesale element of the Energy Price Guarantee Scheme announced for domestic customers, the final unit price will be higher - taking into account factors such as network charges and operating costs that apply to non-domestic contracts.
The majority of non-domestic energy users operating in Great Britain will be eligible for the EBRS, with the exception of a limited few, including businesses using energy for the purpose of generating power to sell back to the grid.
WHAT DOES THIS MEAN FOR MY BUSINESS?
EES customers are assured that EES are in continual communication with all suppliers within the energy market to confirm their live position on how they’ll be interpreting and delivering the EBRS, both to new and existing commercial clients.
EES are aware that several companies acting as Energy Suppliers or Consultants are cold calling businesses with a view of gaining contractual information and using the current market to push businesses into longer term deals that fall outside the duration of the current EBRS scheme. Please be wary, and call us for any advice or guidance that you require.
Further communication will be provided on the EBRS as further details are announced. If you do have any concerns or wish to ask any questions, please do not hesitate to contact our Sales Director Craig Watson on 0121 274 3573.