The UK Government has released overdue details of the financial support available for business following the expiry of the current Energy Bill Relief Scheme (EBRS) on 31st March 2023.

The new Energy Bills Discount Scheme (EBDS) will run for 12 months from 1st April and be applicable to non-domestic customers as below;

• Discounts will be applied to electricity and gas charges via supplier invoices (as per EBRS)
• Discounts will only be applied where the wholesale cost of the associated energy contract exceeds a certain Price Threshold
• Discounts will be calculated as the difference between the wholesale cost of the associated energy contract and the Price Threshold
• Maximum Discounts cap the level of support available
• While most businesses will be eligible for standard support levels, additional financial support is available to sectors defined as Energy and Trade Intensive Industries (ETII)

Standard support

• Electricity Price Threshold of £302 MWh (30.2 p/kWh), Maximum Discount of £19.61 MWh (1.961 p/kWh)
• Gas Price Threshold of £107 MWh (10.7 p/kWh), Maximum Discount of £6.97 MWh (0.697 p/kWh)

Energy and Trade Intensive Industries (ETII) support

• Electricity Price Threshold of £185 MWh (18.5 p/kWh), Maximum Discount of £89 MWh (8.9 p/kWh)
• Gas Price Threshold of £99 MWh (9.9 p/kWh), Maximum Discount of £40 MWh (4 p/kWh)
• Maximum Discounts are applicable to 70% of volume *
• Eligible ETII customers will have to apply for the higher level of support. Further details on how this will work will be published in due course

Inevitably UK business will be disappointed with the standard level of support offered through the EBDS. However, if your business has yet to contract in the impacted period then there remain opportunities to achieve/outperform the ETII Price Threshold levels.

Adalta Energy understands that this is an uncertain and extreme time for UK business. If you have any questions on the ongoing energy crisis or require any assistance, then please contact enquiries@adaltaenergy.co.uk or call Ed Butler directly on 07989 431184. Alternatively, if you are an existing Adalta Energy client then please speak directly with your dedicated contact.

Updates

* 20th January 2023 - UK Government updated guidance on 17th January 2023 to include reference to the ETII Maximum Discount being applicable to 70% of volume only