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UK Government Energy Relief Scheme for Businesses, Charities & Public Sector Organisations

PLEASE NOTE: THIS SCHEME HAS NOW CLOSED (Update March 2024)

Energy Bills Discount Scheme, ETII and Heat Supplier Higher Level Support 

Update 11 May 2023

The government registration portal for Energy and Trade Intensive Industries (ETII) and Heat Suppliers (QHS) is now open for applications. If you believe you are eligible for higher-level support under the Energy Bill Discount Scheme (EBDS), you should act promptly and submit your application within 90 days. You can apply using the following links:

All other customers do not need to take any action. Baseline support for eligible non-domestic customers will be automatically applied to relevant bills. However, it is important to note that the p/kWh discounts offered are significantly lower than previous EBRS support.

Content is provided and may be subject to change by UK government or the Department for Energy Security and Net Zero (DESNZ, previously known as BEIS).

The Energy Bill Discount Scheme (EBDS) is a new scheme designed to support business customers with their energy bills. It has replaced the Energy Bill Relief Scheme (EBRS) which ended on 31 March 2023.

The Energy Bill Discount Scheme (EBDS) will be available from 1 April 2023 to 31 March 2024 but the discounts on offer are significantly lower when compared to EBRS.

About the new scheme

The EBDS scheme is made up of 3 different parts:

  • The baseline discount will provide some support with energy bills for eligible business customers in Great Britain and Northern Ireland – this support will be applied automatically.
  • The Energy and Trade Intensive Industries ETII discount will provide a higher level of support to businesses and organisations in eligible sectors – you need to register to get this support.
  • The heat supplier discount will provide a higher level of support to heat networks with domestic end consumers – you need to register to get this support.

For further details about the EBDS scheme visit: https://www.gov.uk/guidance/energy-bills-discount-scheme

Eligibility for the Energy Bills Discount Scheme

The EBDS scheme is available to everyone on a business contract, including businesses, voluntary sector organisations, and 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).

The EBDS will be set out in regulations made under the Energy Prices Act 2022.

Discount for Energy Bills

UK government will provide a discount on gas and electricity unit prices. Eligible business consumers will receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024, subject to a maximum discount. The relative discount will be applied if wholesale prices are above a certain price threshold.

The discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold. The discount is phased in when the contract’s wholesale price exceeds the floor price until the total discount per MWh reaches the maximum discount for that fuel.

Energy and Trade Intensive Industries (ETII) Eligibility

Recognising that some business energy users in Great Britain and Northern Ireland are particularly vulnerable to high energy prices due to their energy-intensive and trade exposure, these sectors will receive a higher level of support, subject to a maximum discount. To be eligible for this enhanced support, entities must be classified as an Energy and Trade Intensive Industry (ETII). If your business is an Energy and Trade Intensive Industry or a Qualifying Heat Network, you may be eligible for enhanced support from the Government.

The higher level of discount will 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. The universal level of support will be automatically applied for the remaining 30% of energy volumes. The discount is likely to show up as one line on your bill as suppliers will do one calculation for the overall discount you are owed.

The UK government online ETII and Heat Supplier application portals are now available. Guidance on how to apply and what information is required (a process that can take up to 30 minutes) can be found on the UK government website at

For ETII: https://www.gov.uk/guidance/energy-bills-discount-scheme-energy-and-trade-intensive-industries-support

For a Heat Supplier: https://www.gov.uk/guidance/energy-bills-discount-scheme-heat-networks-support

An entity will be considered an eligible ETII if 50% or more of their sales/services in financial year 2021-22 are in an eligible sector, as determined by the published list of Standard Industry Classification (SIC) codes. The list of sectors eligible for ETII support can be found here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1128033/230104_ETII_List_for_gov.uk.pdf

Discounts

The maximum discounts and price threshold for these sectors are:

  • Electricity – £89 per MWh with a price threshold of £185 per MWh.
  • Gas – £40 per MWh with a price threshold of £99 per MWh.

During the ETII and Heat Supplier certification process, you will be required to register at:-

ETII and Heat Supplier customers will be required to provide relevant energy supply contract references and applicable meter point references. Any data discrepancies, appeals will be handled by DESNZ.

Key Messages from UK Government

The EBDS discount tables can be found here: https://www.gov.uk/government/publications/energy-bill-discount-scheme-discounts-for-fixed-default-and-variable-contracts