Energy Bills Discount Scheme

The Energy Bills Relief Scheme will be replaced by the 'Energy Bills Discount Scheme' from 1 April 2023. This will last for 12 months and is seen as a transitional scheme. The amount of support seems to have been significantly reduced despite the work we have done with members to evidence increasing cost pressures. Rather than being a cap on the wholesale unit price, it is now a maximum discount per wholesale unit above a certain threshold if our understanding is correct. The total money set aside for the scheme also appears to have been capped at £5.5bn - it's unclear what happens if that amount is breached.

Eligible non-domestic consumers will now receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024, 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 maximum discounts have been set at:

• Electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.

• Gas - £6.97 per 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.

See the press release here

Energy Bills Factsheet