Bryt Insight October 2022

Bryt Energy
| 13th October 2022 | Bryt Insight
Energy Bill Relief Scheme
£50m available for Industrial Fuel Switching
Widespread support for UK wind and solar
News in Brief
Energy Bill Relief Scheme

Over the past few months, the UK has never before seen such high and volatile wholesale energy prices. With Russia’s 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 ‘Energy Bill Relief Scheme’ 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’s discount will be applied to energy usage initially between 1st October 2022 – 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.  

 

Eligibility 

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:   

  • businesses  
  • voluntary sector organisations, such as charities  
  • public sector organisations such as schools, hospitals and care homes  

who are:   

  • 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– 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’ bills for their electricity consumption from 1st October 2022.

The Government will review the scheme in 3 months’ time to inform decisions on future support after March 2023, focusing primarily on assisting the most vulnerable non-domestic customers.  

 

Learn more 

We have a range of FAQs on the ‘Energy Bill Relief Scheme’ 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’s website, here.

£50m available for Industrial Fuel Switching

The Government has unveiled nearly £50 million of new funding to help firms in heavy-industry sectors decarbonise and accelerate their journey to net zero1.

Those applying for funding will need to put in proposals for pre-commercial solutions to replace fossil fuel use with: 

  • Hydrogen 
  • Electrification 
  • Biomass, waste-derived fuels, and other net zero compatible fuels.  

The competition is open to all industrial sectors and fuel switching technology developers. Applicants must register by November 11th and complete their applications by November 25th. Successful participants will then receive a funding share of between £1 million – £6 million. To find out more, click here. 

Widespread support for UK wind and solar

Polling from across Britain has shown strong support for renewable solutions to help tackle rising electricity prices2. The analysis, commissioned by RenewableUK, shows 77% of people in the UK think the Government should use new wind and solar farms to reduce electricity bills, with 76% of respondents supporting new projects in their local area.

Meanwhile, the UK Warehousing Association (UKWA) says warehouse roofs could provide 15GW of solar energy a year if properly utilised3. That space currently totals around 18,500 acres of land – it says this could help British industry play a vital role in scaling renewable technologies and generation. UKWA’s report also highlighted that if a third of all warehouses utilised solar generation, they could double the UK’s solar PV capacity and also deliver the entire requirement for the UK’s 2030 target.

News in Brief
  • The new Chancellor Kwasi Kwarteng’s ‘mini budget’ featured plans to “unlock the potential of onshore wind”. It means planning rules for turbines in England will be relaxed to bring consent in line with other infrastructure, making them easier to deploy. The Government hopes the move will help accelerate infrastructure and energy projects in the UK4.

 

  • The ‘clean energy transition’ could generate global savings of up to £10.2 trillion, according to an Oxford University study5. The report looks at historic price data for renewables and fossil fuels and models how they are likely to change in the future. Researchers say the findings should help dispel concerns that the net zero energy transition will be costly.

 

  • Ofgem and the UK Government have released the Electricity Networks Strategic Framework, which spells out the “unprecedented scale and pace” the electricity network will need to transform at in order to support Britain’s decarbonisation6. The two bodies will ensure an independent “Future System Operator” will advise key decision makers and ensure the transition is properly planned. Learn more about the actions set out to achieve a net zero energy system, here.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 01217267575 or at solutions@brytenergy.co.uk.

Sources

1. https://www.gov.uk/government/publications/industrial-fuel-switching-competition-phase-2-demonstration-projects 

2. https://www.survation.com/polling-in-every-constituency-in-britain-shows-strong-support-for-building-wind-farms-to-drive-down-consumer-bills/

3. https://www.ukwa.org.uk/market-intel/time-to-act-on-extortionate-and-obstructive-electricity-grid-if-we-are-to-tackle-the-energy-crisis-say-uk-warehouse-owners/ 

4. https://renewablesnow.com/news/uk-to-ease-onshore-wind-permitting-with-new-infrastructure-reforms-799083/

5. https://www.cell.com/joule/fulltext/S2542-4351(22)00410-X

6. https://www.gov.uk/government/publications/electricity-networks-strategic-framework

Back to the knowledge hub
Categories
All
Energy
Renewables
Optimisation
Bryt Insight
Sustainability
Relevant NEWS
Bryt Insight May 2024
Bryt Insight May 2024
Read
Bryt Insight April 2024
Bryt Insight April 2024
Read
Smart Meters Myth Busting Q&A with Yasir Choudhry, Metering and Settlements Manager
Smart Meters Myth Busting Q&A with Yasir Choudhry, Metering and Settlements Manager
Read