Energy Bill Relief Scheme
Over the past few months, the UK has never before seen such high and volatile wholesale energy prices. With Russia‚Äôs invasion into Ukraine, gas prices have soared, and when coupled with a post-Covid increase in demand, as well as electricity shortages in Europe, electricity prices in the UK have been driven up to extreme levels. This has created unprecedented challenges for many businesses and their employees.¬†
We therefore welcome the Government’s recent announcement of their ‚ÄėEnergy Bill Relief Scheme‚Äô to support businesses during the current energy crisis.
The scheme will provide a discount on wholesale electricity and gas prices for all non-domestic customers, calculated by reference to a supported price set by the government.¬†
The Government Supported Price has been set at ¬£211/MWh for electricity, though the level of discount will vary for each business depending on their contract type and circumstances.¬†¬†¬†
The scheme‚Äôs discount will be applied to energy usage initially between 1st October 2022 ‚Äď 31st March 2023. It will apply to fixed contracts agreed on or after 1st December 2021, as well as to deemed, variable and flexible tariffs and contracts. ¬†
The eligibility for the scheme has been defined by The Department of Business, Energy & Industrial Strategy (BEIS) as follows:¬†¬†¬†¬†¬†
Everyone on a non-domestic contract including:¬† ¬†
- voluntary sector organisations, such as charities¬†¬†
- public sector organisations such as schools, hospitals and care homes¬†¬†
- on existing fixed price contracts that were agreed on or after 1st December 2021
- signing new fixed price contracts ¬†
- on Deemed/Out of Contract or variable tariffs¬†¬†
- on flexible purchase or similar contracts¬†¬†
If you are on a fixed contract, your discount will be determined by the date you signed your contract. We recommend that you check the date you signed your contract to get an indication of whether you will be eligible for a discount on the electricity you consume between 1st October 2022‚Äď 31st March 2023. ¬†
You can view the dates and discounts you may receive on the Government’s website, here.¬†
If you are eligible, you will not have to take action or apply to the scheme to receive support. Suppliers will automatically apply the associated discounts to all eligible customers‚Äô bills for their electricity consumption from 1st October 2022.
The Government will review the scheme in 3 months‚Äô time to inform decisions on future support after March 2023, focusing primarily on assisting the most vulnerable non-domestic customers.¬†¬†
We have a range of FAQs on the ‚ÄėEnergy Bill Relief Scheme‚Äô and the energy market more generally that we continue to update, which you may find helpful during this time: https://www.brytenergy.co.uk/faqs/
You can also read more about the new support for businesses on the Government‚Äôs website, here.