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SUMMARY
The UK Government has unveiled a new programme (EBDS) to support businesses with the high cost of energy and to replace the current Energy Bill Relief Scheme (EBRS) which is ending in March 2023.
WHY A NEW SCHEME?
The EBDS new scheme was introduced in relation to the wholesale energy prices which have been falling to pre-Ukraine war.
This scheme will operate until March 2024 and it will apply a discount depending on the energy's wholesale price.
The discount is available to all eligible UK companies and non-domestic energy customers, including nonprofits and the public sector.
WHAT DO I NEED TO DO?
If you are "non-energy intensive" business, nothing - your supplier should apply the discount to your account.
We'd recommend to check your bills to make sure that the discount is included in your energy invoices.
If you are an "energy intensive" business, you will need to register and apply for the discount.
WHAT DO ENERGY INTENSIVE BUSINESSES NEED TO DO?
Businesses who qualify as "energy intensive" like manufacturers - check on
here, must apply for the discount under a new “ETII scheme”. For more information on how to apply check on
here.
HOW DOES IT WORK?
- For non-intensive energy businesses:
Electricity
Discount of £19.61 (MWh) with a price threshold of £302 per MWh.
Gas
Discount of £6.97 (MWh) with a price threshold of £107 per MWh.
Essentially this means that you will not receive any support if your business is paying less than 30.2 p/kWh on electricity and 10.7 p/Kwh on gas.
- For intensive energy businesses (ETII):
A discount reflecting the difference between the price threshold and the wholesale price:
Electricity
Price threshold of £185/MWh for electricity.
Gas
Price threshold of £99/MWh for gas.
This discount will only apply to 70% of the energy consumed and will be subject to a maximum discount of £89.1/MWh for electricity and £40.0/MWh for gas.
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.
More to learn.
