Energy Bills Discount Scheme
The government's Energy Bill Relief Scheme (EBRS) ends in March 2023 and will be replaced in April by a new Energy Bills Discount Scheme.
This scheme provides much less protection than EBRS and works on the basis that if wholesale prices for electricity and/or gas rise above a certain threshold, businesses will receive a discount per MWh up to a maximum cap.
The maximum discounts and thresholds 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. It is phased in when the contract’s wholesale price exceeds the threshold, until the total discount per MWh reaches the maximum for that fuel.
The Government is providing a high level energy relief scheme for sectors including food processing and manufacturing, but this currently excludes primary agricultural production.
Non-Domestic Alternative Fuel Scheme
In addition, businesses which rely on alternative fuels to heat their buildings should receive a credit of £150 through the Non-Domestic Alternative Fuel Payment scheme. This should have been paid automatically by electricity suppliers in February and March.
Energy Bill Support Scheme Alternative Funding
A £400 discount should be available for farmhouses that don’t have a domestic electricity supply separate to the farm business supply. You need to apply for the support through Gov.UK or call 0808 175 3287. The payment will be made by your Local Authority.
Alternative Fuel Payment
From February, households who don’t use mains gas for heating should have received £200 towards their energy bills through the Alternative Fuel Payment. This should be paid automatically as a credit on your electricity bill. If you don’t have a direct relationship with an energy supplier, you will need to apply to receive the payment through a government online portal, or call 0808 175 3943