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Energy Bills Discount Scheme – don’t miss the 25 July deadline for additional support!

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The Energy Bills Discount Scheme (“EBDS”) was rolled out from 1 April 2023 for a period of one year to 31 March 2024. This scheme is hugely scaled back compared to the Energy Bill Relief Scheme (“EBRS”) which was the first energy support scheme. This is in response to warnings around the sustainability of EBRS.

The scheme offers two levels of support:

Baseline support

The scheme gives non-domestic customers a unit discount of up to £6.97/MWh on gas and £19.61/MWh on electricity. You do not need to apply for this as it will be automatically applied if you are entitled to it.

Higher level support

A higher level of support is available for those entities in sectors identified as being the most energy and trade intensive (“ETIIs”) – these are predominately manufacturing industries. You must apply for the higher level of support by 25 July 2023.

Qualifying organisations will be entitled to a discount reflecting the difference between the price threshold, £99/MWh for gas and £185/MWh for electricity, and the relevant wholesale price. This discount will only apply to 70% of energy volumes and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.

A full list of Energy and Trade Intensive Industries (“ETII”) has been provided by the government and a link can be found here. To qualify for this additional support, at least 50% of your revenue should be generated from UK-based activity included in the list (based on SIC codes).

The following sub-sectors have also been identified as ETII:

  • Library and archives
  • Museums
  • Operation of historical sites and buildings and similar visitor attractions
  • Botanical and zoological gardens and nature reserve activities.

Full details of the scheme can be found on the Energy Bills Discount Factsheet.

You can apply for the scheme here and the deadline to apply for this higher level of support is 25 July 2023. Currently, the majority of non-domestic customers have not yet applied and may miss out, so make sure that you apply to secure any additional support you are entitled to.