The government has announced a new Energy Bill Relief Scheme for businesses.
Unsure what this might mean for you? Read these FAQs.
What is the Energy Bill Relief Scheme?
Through the scheme, the government will provide a p/kWh discount on wholesale gas and electricity prices for all non-domestic customers, which is equivalent to the Energy Price Guarantee for households. The government has set a Supported Wholesale Price, which is expected to be £211 per MWh for electricity and £75 per MWh for gas, approximately half of the wholesale prices anticipated this winter. You can find out more here.
Does this relief apply to the UK and Northern Ireland?
The Energy Bill Relief Scheme applies across Great Britain, this exact scheme has not been introduced in Northern Ireland. That said, a similar support plan will be introduced in NI which provides a comparable level of support. The designs of the GB scheme and the separate Northern Ireland scheme will be consistent, but the impact on businesses will vary in Northern Ireland since there are only limited numbers of fixed-price contracts in this specific market.
Will the scheme be reviewed to adjust support for the most vulnerable?
The government will publish a review of the scheme in three months. This will consider how further support can be given to businesses that are the most vulnerable to energy price increases. These are likely to be services that are unable to reduce energy usage or increase energy efficiency without affecting day-to-day working practices.
At the end of the three months, the government will review which groups of non-domestic services remain particularly vulnerable to energy price rises. It has said that continuing support to those deemed eligible would begin at the end of the initial 6-month support scheme, without a gap.
Should home-based salons be advised to claim under the household or the business scheme?
Those who are on domestic tariffs will receive support through the domestic scheme. Those on non-domestic tariffs will receive support through the non-domestic scheme. The level of support within both schemes is comparable. Businesses should check with their supplier if they are not sure which tariff they are on.
Will pre-paid metres see a change in tariffs too?
Yes. The Energy Bill Relief Scheme will be available to all eligible businesses (voluntary sector and public sector organisations) who are on existing fixed price contracts that were agreed on or after 1st April 2022. This includes those who are signing new fixed price contracts, those that are on default or variable tariffs and those that are on flexible purchase contracts.
