Government Energy Bill Relief Scheme – What does it mean for you?

The Government has unveiled its plans to help cut energy bills for businesses, capping the figure at less than half the wholesale prices on previously projected bills.

The new Government Energy Bill Relief Scheme will provide a discount on wholesale gas and electricity prices for all non-domestic customers, including all UK businesses, charities and the public sector, such as schools and hospitals.

This support will be equivalent to the Energy Price Guarantee put in place for domestic households.

What are the savings?

The Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity.

Relief will be applied to variable and flexible tariffs and contracts, as well as fixed contracts, agreed on or after 1 April 2022.

The scheme is based on usage and will run for an initial six-month period for all non-domestic energy users from 1 October 2022 to 31 March 2023. Any savings will first appear in October bills that are usually issued by suppliers in November.

How will payments be made?

The scheme will be applied automatically at source to bills, so customers do not need to take any action to benefit from this support.

The level of price reduction for each business will vary depending on their contract type and circumstances. The Government has outlined the various levels of support here.

For non-domestic consumers who use heating oil or alternative fuels, equivalent support will be provided, with details to be announced shortly.

The scheme will be reviewed in three months and the Government will publish a report on the relief that will inform decisions on future support after March 2023. This will focus on identifying the most vulnerable non-domestic customers.

For help and advice on related matters, contact our team today.

Posted in Business.