What to do When the Business Energy Price Cap Ends

The Energy Bill Relief Scheme (EBRS) has provided energy bill relief for businesses in Great Britain and Northern Ireland since 1st October last year.

The initiative is due to conclude on 31st March, so what support will be available after this date and how can you keep your gas and electricity costs down going forward? We’re on hand to tell you everything you need to know.

Your options when the Energy Bill Relief Scheme closes

Before the current commercial energy price cap ends, businesses are advised to consult with an independent energy broker to make sure they won’t be paying over the odds after 31st March.

The right advisor will lay out every possible alternative for you and carry out a free energy health check for your business to identify where savings can be made.

The UK Government has already announced a replacement for the EBRS in the shape of the Energy Bills Discount Scheme (EBDS), which will run for a year from 1st April 2023. While qualifying businesses can benefit from  the EBDS when the existing EBRS concludes, the amount of discount provided will be far less.

With this in mind, the value of a business energy advisor’s expertise cannot be overstated, as they could help you make up any shortfall when the current discount no longer applies.

How the new Energy Bills Discount Scheme will work

The scheme will offer a reduction on gas and electricity unit prices in pence per kilowatt hour, if wholesale prices exceed the required threshold. Maximum discounts and thresholds are as follows…

• Electricity: Up to £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
• Gas: Up to £6.97 per MWh with a price threshold of £107 per MWh.

Businesses operating within Energy & Trade Intensive Industries will qualify for extra support, with electricity discounts of up to £89 per MWh available against a price threshold of £185 per MWh, and gas discounts of up to £40 per MWh on offer, with a price threshold of £99 per MWh.

Rather than relying on a scheme that offers lower discounts than what is currently available, speaking to a commercial energy broker before the EBRS expires is recommended to find out whether you’re on the best energy tariff for your business and how much discount you could be eligible for. Make an enquiry below so we can match you with a specialised broker today.

Does this mean your energy costs will rise?

Given that the maximum discounts on variable, deemed and all other contracts is £345 per MWh for electricity and £91 per MWh for gas under the EBRS, businesses who fail to take action and simply rely on the incoming EBDS will end up paying more for their gas and electricity.

There is, however, a way you can avoid incurring higher costs. By speaking to a commercial energy advisor, you may find that there is an opportunity to switch to a more affordable energy tariff and implement other cost-cutting measures to keep your bills down after 31st March.

We offer a free advisor-matching service that will handpick the right energy broker for your needs and circumstances. Get in touch to find out how much they could help you save today.

What is the criteria for the Energy Bills Discount Scheme?

Businesses are eligible for EBDS support if they are:

• On fixed-price contracts entered on or after 01/12/21
• Signing new fixed price contracts
• On deemed/ out of contract or standard variable tariffs
• On flexible purchase or similar contracts

If you’re unsure whether your company qualifies for the scheme or want to find out what other money-saving options are available, get in touch below and we’ll match you with a commercial energy specialist who can help.