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Energy Bills Discount Scheme (EBDS) for businesses and non-domestic customers

This new government scheme, which replaces the previous Energy Bill Relief Scheme (EBRS), will run for 12 months from 1 April 2023 to 31 March 2024.

The scheme will be available to everyone on a non-domestic energy supply contract with a licensed energy supplier 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 1 December 2021
  • signing new fixed-price contracts
  • on deemed/out of contract or variable tariffs, or
  • on flexible purchase (or similar) contracts
  • on variable ‘Day Ahead Index’ (DAI) tariffs (Northern Ireland scheme only)

Comparable support will be extended to non-domestic energy customers who receive gas or electricity delivered over public networks from non-licensed providers.

Eligible non-domestic customers will receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024. This is subject to a maximum discount. The relative discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users in Great Britain and Northern Ireland these threshold prices and maximum discounts have been set at:

  • electricity – up to £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
  • gas – up to £6.97 per megawatt hour (MWh) with a price threshold of £107 per MWh

The discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold. The discount is phased in when the contract’s wholesale price exceeds the floor price, until the total discount per MWh reaches the maximum discount for that fuel. The discount is only applied to the wholesale element of the bill and therefore the final per unit price paid by non-domestic customers will differ as it includes other costs such as network charges and operating costs.

There are two further elements to the scheme, and eligible customers will need to register through the provided links to access this support:

  • The Energy and Trade Intensive Industries (ETII) discount will provide a higher level of support to businesses and organisations in eligible sectors – you will need to register to get this support, TruEnergy is not determining eligibility for a larger discount
  • The Heat Network discount will provide a higher level of support to heat networks with domestic end consumers – you need to register to get this support, TruEnergy is not determining eligibility for a larger discount

For full details of the EBDS, please visit the government website here. If you are a TruEnergy customer and have any further queries regarding the EBDS, we would be happy to assist you via email.

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Energy Bill Relief Scheme (EBRS) for businesses and non-domestic customers

This government scheme will provide energy bill relief for all non-domestic customers in Great Britain, with discounts applying initially for the period between 1 October 2022 and 31 March 2023, after which further support will be subject to a review by HM Government. Those eligible for the EBRS include:

  • 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 1 December 2021
  • signing new fixed-price contracts
  • on deemed/out-of-contract or variable tariffs
  • on flexible purchase or similar contract

The relief for energy bills will apply to gas and electricity unit prices. For non-domestic customers, the unit price is as below:

  • £211 per megawatt hour (MWh) for electricity
  • £75 per MWh for gas

If you are a business or non-domestic customer of TruEnergy, we will apply the reduction to the bills of eligible customers ourselves, with no action required for the end user. The discount will be applied in pence per kilowatt hour (kWh).

If you have signed a fixed business contract effective on or after 1 December 2021, you are eligible for the government Energy Bill Relief Scheme. The discount applied to a unit rate will be a difference between Reference Wholesale Price and Government Support Price. The Reference Wholesale Price is determined by the government daily and will not change. If your fixed tariff is based on wholesale prices below the government-supported price, you will not be eligible for support.

If you are on a variable tariff, you will get the reduction subject to the ‘maximum discount’. The maximum discount, calculated by the government and set on 30 September 2022, is £345 per MWh for electricity and £91 per MWh for gas.

If you are on a day and night tariff, your discount will be calculated on a weighted volume basis. Here are the steps on how we will achieve this:

  1. A volume-weighted tariff will be calculated to get a single tariff from day and night tariffs based on:
    a. 58% and 42% proportion for NHH meter points;
    b. Historical average proportion for HH meter points;
  2. A discount will be applied to a volume-weighted single tariff;
  3. If the post-discount weighted single tariff does not reach the Government Support Price, then the discount amount will be multiplied by the total actual or estimated consumption for the month – that will be the £ discount applied to your bill;
  4. If the post-discount weighted single tariff does reach the Government Support Price, then the discount amount will be reduced up to the Government Support Price. After that, a reduced discount will be multiplied by the total actual or estimated consumption for the month – that will be the £ discount applied to your bill.

For full details of the EBRS, please visit the government website here. If you are a TruEnergy customer and have any further queries regarding the EBRS, we would be happy to assist you via email.

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