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Energy Bill Discount Scheme

In recent years, there has been a growing concern about energy consumption and its impact on the environment. Governments across the world have implemented various energy-saving measures to encourage businesses to reduce their carbon footprint – one of these initiatives is the Energy Bill Discount Scheme (EBDS) for businesses which will run for one year from 1st April 2023.

The Energy Bill Discount Scheme provides financial support to businesses to help them reduce their energy bills. The scheme offers a discount on the cost of electricity, gas and other forms of energy. By reducing energy usage, businesses can also reduce their carbon footprint which is beneficial for the environment. This in turn can help businesses meet their sustainability goals and enhance reputation as a responsible environmentally conscious company.

The discount is assessed monthly by the energy supplier and will be applied directly to the invoice. It is calculated as the difference between the wholesale price associated with an energy contract and the EBDS price threshold. The discount is phased in when the contract’s wholesale price exceeds the threshold price, until the total discount per kWh reaches the maximum discount for that fuel.

The discount available is:

· Gas - support starts at 10.7p/kWh. Maximum phased discount 0.697p/kWh.

· Electricity - support starts at 30.2p/kWh. Maximum phased discount 1.961p/kWh.

Energy & Trade Intensive Industries (ETIIs) will receive additional support - mostly organisations within industrial and commercial sectors. This enhanced discount will only apply to 70% of energy volumes. The maximum discounts and price threshold for these sectors are:

· Electricity - Support starts at 18.5p/kWh. Maximum phased discount 8.9p/kWh.

· Gas - Support starts at 9.9p/kWh. Maximum phased discount 4p/kWh.

Overall, the Energy Bill Discount Scheme is an excellent initiative that provides financial support to businesses to help them reduce their energy bills. We recommend you to explore the scheme and see how it can benefit your business.


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