Energy Bill Relief Scheme for businesses

Many of our members have been struggling with the rising energy costs that they have been unable to pass on and in some cases led to closure of factories and loss of jobs. 

 

It will give businesses a discount based on a government-supported baseline price for an initial 6 months. 

 

Wholesale energy prices for businesses will be cut by 50% starting from 1st October 2022 and end on 31st March 2023. This covers all non-domestic customers, including all UK businesses, the voluntary sector such as charities and the public sector such as schools and hospitals. 

 

This scheme will be reviewed after three months to see the effectiveness of the assistance and whether it should be extended beyond the initial 6 months. 

 

This much needed intervention will act as a lifeline for many Textile manufacturers who have in some case seen their energy costs trebled in recent months. 

 

It gives discounted gas and electricity unit prices for those on non-domestic contracts, including: 

Your business should be: 

• on a fixed price contract, agreed on or after 1 April 2022 

• signing a new fixed price contract 

• on deemed/out of contract or variable tariffs 

• on flexible purchase or similar contracts 

 

For variable, deemed and all other contracts, the discount is still based on the difference between the government-supported price and the wholesale price – but there will be a ‘maximum discount’ applied. 

 

To administer support, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas. 

 

The discounts will be applied automatically to your bills for energy used from October 2022 onwards. 

 

Further guidance can be obtained at https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers.