Understanding the Energy Bill Relief Scheme
To assist businesses with their energy bills during winter-22, the UK government has created the Energy Bill Relief Scheme (EBRS). The EBRS will run from 1st October 2022 to 31st March 2023. The objective is to get businesses as close to 7.5 p/KWh for gas and 21.1 p/KWh for electricity on the wholesale part of the bill.
It’s important to note that the EBRS is actually a discount from wholesale market rates and not a cap as businesses have been led to believe. And the level of discount you receive will be based on your contract type.
Fixed contracts
For fixed contracts, the discount that will be applied to your winter unit rates will depend on the date you signed or locked in your contract. This applies to all fixed price contracts signed on or after the 1st of December 2021. The discounted rates also include the wholesale element, which for a fixed price contract is rolled up into a single unit rate which includes wholesale, non-commodity, supplier fees and margins.
Flex contracts
For variable and flexible contracts, the discount has been set at 34.5p/kWh for electricity and 9.1p/kWh for gas. The discount will be applied to the overall unit rates, inclusive of wholesale, network, policy and supplier costs, but exclusive of VAT and Climate Change Levy, until the unit rate reaches the government-supported price (21.1p and 7.5p) once their discounts have been applied.
Check out our accompanying infographic: Our Expert View of the Energy Bill Relief Scheme. Where our experts share their views on the EBRS and the best options for businesses.
Author: Paul Scarborough, CMO
Creative: Robyn Miller, Marketing Manager
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