SUMMARY

- This scheme will provide energy bill relief for non-domestic customers in Great Britain. 

- Discounts will be applied to energy usage initially between 1 October 2022 and 31 March 2023.

- A similar scheme will be established in Northern Ireland, providing a comparable level of support.

HOW IT WORKS

- The discount is automatic.

- The p/kWh discount will be applied to bills automatically. 

Businesses do not need to act or specifically apply to the Scheme to access the support.

- The government will compensate suppliers for the reduction in wholesale gas and electricity unit prices that they are passing onto businesses.

- In 3 months’ time, the scheme will be reviewed and the government will decide on future support after March 2023.

AVAILABILITY OF THE SCHEME

- The scheme will be available to every business, including voluntary sectors, charities and public sector such schools, hospitals and care homes.

- The government will provide a discount on your gas and electricity unit prices.

To calculate your discount, the estimated wholesale portion of the unit price you would be paying this winter will be compared to a baseline ‘government supported price’ which is lower than currently expected wholesale prices this winter.

For all business energy users in Great Britain this government supported price has been set at:

- £211 per megawatt hour (MWh) for electricity.

- £75 per MWh for gas.

- A comparable rate will be set shortly for Northern Ireland.

FOR CUSTOMERS WITH A FIXED PRICE CONTRACT

- For fixed contracts, the discount will reflect the difference between the government supported price and the relevant wholesale price for the day the contract was agreed. The government will publish the wholesale prices we will use for calculating this for each day from 1 April 2022.

- The discount applied will be in pence per kilowatt hour (p/kWh). The p/kWh government support for comparable contracts will be the same across suppliers, but the absolute level of individual bills will continue to vary across different contracts and tariffs.

FOR CUSTOMERS WITH A FLEXIBLE AND VARIABLE CONTRACT 

- For variable, and all other contracts, the discount will reflect the difference between the government supported price and relevant wholesale price, but be subject to a ‘maximum discount’ that will determined at the beginning of the scheme.

- Businesses on variable / flexible contracts will need to choose if they move to fixed contracts. This is likely to suit you if you don’t want to be exposed to price variation. You will be contacted by your supplier.

- This will be limited to the Maximum Discount, likely to be circa £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments.

FOR CUSTOMERS WITH A DEEMED CONTRACT 

- For deemed contracts, the discount will reflect the difference between the government supported price and relevant wholesale price, but be subject to a ‘maximum discount’ that will determined at the beginning of the scheme.

- This will be limited to the Maximum Discount, likely to be circa £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments.

HOW CAN WE HELP ?

As the situation develops, we will keep you informed on the specifics and provide you with any new information.

Check out our Twitter, LinkedIn, and website frequently to stay up to date.

The plan, however, leaves opportunity for ambiguity, so customers could not receive all the assistance to which they are entitled.

Bramo Energy will provide to all of its clients an additional Energy Validation Service which will:

1 - Check the discount is applied.

2 - Resolve any issues with the energy supplier.

3 - Make sure that any additional energy units are not paid.

Would you like to know more?

Or do you have any questions about one or more of these topics?

Feel free to contact us at hello@bramoenergy.com.