The new EBDS (Energy Bill Discount Scheme) was announced on 10 January 2023 and will replace the existing Energy Bill Relief Scheme from 1st April 2023. In the current scheme, the government effectively makes up the difference between the energy price and a cap on costs. There is no cap in the new scheme, instead, a discount is applied if the contract energy price is above a threshold price as follows:
- Electricity: If the wholesale portion of the bill rises above 30.2p per KWh, a maximum discount of 1.96p per KWh is applied
- Gas: If the wholesale portion of the bill rises above 313.6p per therm, a maximum discount of 20.4p per therm is applied.
This scheme applies to all businesses with farming and food not singled out for preferential treatment despite the impact of energy prices on food inflation.