A new Government Energy Bill Relief Scheme will provide a discount on the wholesale price of gas and electricity. This support will be equivalent to the Energy Price Guarantee put in place for households. This support will be available to all non-domestic customers, including all UK businesses, the voluntary sector, such as charities, and the public sector, such as schools and hospitals.
To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. The scheme will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period. Savings will be first seen in October bills, which are typically received in November.
As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills. After three months, there will be a review into the operation of the scheme, to inform decisions on further support after March 2023.
The level of price reduction for each business will depend on their contract type and circumstances.
Energy Bill Relief Scheme announcement – Support for non-domestic customers