The NEW Energy Bill Discount Scheme

The new scheme will run from 01/04/2023 to 31/03/2024 and will be called the Energy Bills Discount Scheme (EBDS).

This means that the Energy Bills Relief Scheme (EBRS) that is currently in operation will cease on the 31/03/2023.

Eligibility for Energy Bills Discount Scheme (EBDS)

As with the original Energy Bills Relief Scheme (EBRS), the new EBDS scheme will be available to everyone on a non-domestic contract including.

  • Businesses
  • Voluntary sector organisations, such as charities
  • Public sector organisations such as schools, hospitals, and care homes

Who 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)

Under the new scheme customers will be split into two groups as outlined below:

  1. Non-Energy (non-ETII)
  2. Trade Intensive Industries (ETII)

Do I qualify for the discount?

Non-Energy (non-ETII)

For non-ETII customers (the majority of SME’s) the following changes / discount apply:

Electricity

  • For Electricity the maximum discount is being reduced from 34.5 p/kWh to 1.961 p/kWh
  • The floor price is changing from 21.1 p/kWh to 30.2 p/kWh

Gas

  • For Gas the maximum discount is being reduced from 9.1 p/kWh to 0.697 p/kWh
  • The floor price is changing from 7.5 p/kWh to 10.7 p/kWh

Trade Intensive Industries (ETII)

Customers who have a valid ETII certificate will quality as ETII automatically and BEIS will confirm to your supplier who they are so they can apply the relevant discount, however, any other customer who are not already registered and want to qualify as ETII will have to go through a BEIS qualification process.

Under EU rules 70% of ETII volumes are eligible for the discount but more information will be made available to your supplier closer to the 01/04/2023 when the EBDS comes into force.

For ETII customers the following changes / discounts apply:

Electricity

  • For Electricity the maximum discount is being reduced from 34.5p/kWh to 8.9 p/kWh
  • The floor price is changing from 21.1p/kWh to 18.5p/kWh

Gas

  • For Gas the maximum discount is being reduced from 9.1p/kWh to 4p/kWh
  • The floor price is changing from 7.5p/kWh to 9.9p/kWh

What do I do now?

As with the original scheme, customers do not need to apply, and any new discount will automatically be applied to the unit rate on the customers’ bills in the same way we do for the current EBRS, and for any multi-rates the weighting process will remain the same.

Although there is still the 1st December 2021 qualifying start date, it looks like there will no longer be a timeseries for fixed contracts therefore the same parameters apply for qualifying users however any caveats relating to Qualifying Financially Disadvantage Customers (QFDC) will probably remain the same.

Further information on the EBDS is available from the government website https://www.gov.uk/guidance/energy-bills-discount-scheme

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