As an Energycentric customer, we’re keeping you informed about the latest updates on the Government’s Energy Bill Discount Scheme (EBDS). These are the latest updates that may affect your business.

 

The Energy Bill Discount Scheme (EBDS) – which supports businesses, charities, and the public sector – came into force from 1st April 2023, and will remain in place for a year, until 31st March 2024. The scheme provides a reduced level of support for non-domestic customers for stability in a constantly changing energy market.

 

Energy Bill Discount Scheme (EBDS) is made up of 3 parts:

  • The baseline discount – provides support with energy bills for eligible non-domestic customers and is applied automatically. 
  •  The Energy & Trade Intensive Industries (ETII) discount – provides a higher level of support to organisations in eligible sectors. You need to apply online for the discount.
  • The Heat Network discount  – provides a higher level of support to heat networks with domestic customers. You need to apply online for the discount.

 

Are you eligible for EBDS? 

This scheme is available to anyone on a non-domestic energy supply contract, including;

  • Businesses.
  • Voluntary sector organisations, such as charities.
  • Public sector organisations, such as schools, hospitals and care homes.

Who are:

  • 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 variable tariffs, or
  • On flexible purchase (or similar) contracts.
  • On variable ‘Day Ahead Index’ (DAI) tariffs.

 

How is the discount calculated?

The discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold.

 

What do we need to do to obtain the baseline discount?

As with the previous Energy Bill Relief Scheme (EBRS), you do not need to take any action. If you are eligible, a discount will automatically be applied.

Most eligible non-domestic customers receiving the baseline discount should expect to see it in their May bill.

 

Qualifying Heat Suppliers’ Discount 

A higher level of support will be available to heat networks who provide to domestic end users as they fall under a commercial meter. Rates have been set as:

  • Electricity 34p/kWh inc. VAT (32.4 per kWh exc. VAT)
  • Gas 7.83p/kWh inc. VAT (7.45p/kWh exc. VAT)

 

Under the new scheme, heat networks will be eligible for this support if:

  • You meet the definition of a heat network as defined in the EBDS regulations.
  • Are supplied gas and electricity by a licensed supplier for the purposes of generating heat.
  • Serve one or more domestic end consumers.

 

What do we need to do to obtain the Network discount?

For these discounts you will need to apply online via the government portal, which is now open.

Apply here for the Heat Network discount

 

Your organisation will have 90 days from the scheme introduction date of 26th April 2023 to submit an application for higher support. New organisations or newly eligible organisations will have 90 days to apply from the date at which they become eligible.

 

Energy & Trade Intensive Industries (ETII) can apply for the ETII discount here.
If an ETII is supplied by a heat supplier eligible for the EBDS heat supplier support, the ETII does not need to apply.

The heat supplier must claim the discount and pass on the benefit to their ETII customer.

For legal reasons, Energycentric are not able to register the discount on your behalf. We do offer support to customers with any questions you might have about EBDS. Please contact your dedicated account manager directly, or give us a call on 01708 765 555.