The Energy Bill Relief Scheme (EBRS) was announced by the Government on 21 September 2022 in response to the unprecedented energy price inflation being experienced.
This scheme will provide energy bill relief for non-domestic customers in Great Britain including public sector organisations, businesses and charities. Discounts will be applied to energy usage initially between 1 October 2022 and 31 March 2023.
The scheme is fundamentally different to the scheme for households so it is critical that those responsible for managing school energy contracts understand the detail of the scheme and how it will affect them.
Are we eligible?
Those that will see an impact are;
Those not impacted are;
How does it work?
The scheme is auto-enrolment. No action is required by bill payers to access the scheme. Suppliers will apply reductions at source.
The scheme works through capping the wholesale costs of gas (£75 per MWh) and electricity (£211 per MWh). However, the non-commodity costs and supplier costs are not subject to the cap and thus delivered prices will vary.
There is also a maximum benefit available which caps the level of support provided.
How much will we save?
The support provided is flexible depending on type of contract, supplier and when the contract was signed.
For fixed contracts it is not currently possible to identify the discount level as the wholesale element in the contract is not separately listed – these details will follow but a few examples are provided on the BEIS website – see link at the end of this article.
For flexible contracts it is very easy to identify as each trade has its own value. An initial review of a sample of client portfolios by sector specialists Ginger Energy shows discount to be around 25%- 30% depending on purchase points.
How long will the scheme last?
The scheme will run initially between 1 October 2022 and 31 March 2023. There will be a review 3 months into the scheme (around Christmas 2022) to assess what will happen at the end of March.
What if we are not connected to the gas or electricity grid?
The government has announced that an equivalent support package will be provided. Further details to be announced.
Dos and Don’ts
Do not cancel your current contract to access this assistance.
Do check your November bill to ensure the support has been applied correctly.
Do get professional advice on future energy procurement or validation of your bills.
Do continue to look at energy saving opportunities in both the short and longer term.
For more information see the following link
Department for Business, Energy & Industrial Strategy
Disclaimer: The information provided above was correct at the time of initial publication but is subject to change without warning. Do not rely on this information to make decisions or changes to your energy supply arrangements without first seeking professional advice tailored to your organisation.