Energy Bills Discount Scheme (EBDS)
The new Energy Bills Discount scheme (EBDS) will run for 12 months from April 2023 to March 2024 and has replaced the Energy Bill Relief Scheme (EBRS) which provided a capped rate on wholesale gas and electricity prices for all non-domestic consumers for the period October 2022 to March 2023.
EBDS is available to everyone on a non-domestic contract:
- On existing fixed price contracts that were agreed on or after 1st December 2021
- Signing new fixed price contracts
- On deemed / out of contract or standard variable tariffs
- On flexible purchase or similar contracts
Maximum discounts have been set at as the following:
- Electricity: 1.961 p/kWh with a price threshold of 30.2 p/kWh
- Gas: 0.697 p/kWh (20.4 p/therm) with a price threshold of 10.7 p/kWh (313.6 p/therm)
Extra support for Energy and Trade Intensive Industries (ETIIs)
Additionally, extra support will be provided for vulnerable, energy-intensive (mainly manufacturing) industries with high energy exposure. This discount will only apply to 70% of energy volumes.
Support for these sectors:
- electricity: 8.9 p/kWh with a price threshold of 18.5 p/kWh
- gas: 4.0 p/kWh (117.2 p/therm) with a price threshold of 9.9 p/kWh (290.1 p/therm)
How do I know if I am eligible for ETII support?
An organisation is considered eligible for ETII support if at least 50% of their revenue generated is from UK-based activity within eligible Standard Industrial Classification (SIC) code sectors.
ETII sectors are identified as those who meet certain threshold for energy and trade intensity, in addition to sectors currently included in existing Energy Compensation and Exemption schemes.
Energy intensity was based on electricity and gas consumption as a % of a sector’s gross value added (GVA) using Office for National Statistics (ONS) data. Trade intensity was based on goods trade using ONS data. To qualify as an ETII sector, the sector had to be above the 80th percentile for energy intensity, and the 60th percentile for trade intensity. The ETII scheme is subject to consideration of state aid rules.
What do I do next?
The portal is open for applications from 26th April 2023. However, it is import to know that there are strict timelines in which you need to apply:
- Eligible organisations have 90 days from the scheme introduction date (26th April) to apply for higher support
- Newly eligible organisations have 90 days to apply from the date which they become eligible
If you have any questions about determining your eligibility, contact our experts at hello@envantage.co.uk or 0161 448 7722
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