Energy Bill Relief Scheme

What is the Energy Bill Relief Scheme?

The Energy Bill Relief Scheme (EBRS) was a government programme to protect non-domestic customers in Great Britain and Northern Ireland from soaring energy bills during the winter of 2022-23.

Wholesale gas and electricity costs soared in the UK from late 2021, leading to unsustainable energy bills for both domestic and non-domestic customers.^[2] The Federation of Small Businesses (FSB) estimated that between February 2021 and August 2022, the electricity bills of the small firms they represent rose by 349% while the gas bills climbed by 424%.^[3]

Similarly, according to an analysis by Cornwall Insight, businesses that signed two-year energy contracts in the summer of 2020 faced five-fold increases in their cost when renegotiating their contracts in the autumn of 2022.^[3]

Many small businesses or other non-domestic consumers warned that with prices that high, they would struggle to keep their lights on.

In the autumn of 2022, the government unveiled a relief scheme for businesses, part of its package of energy bill support for the winter.

The Energy Bill Relief Scheme provided discounts on per-unit gas and electricity rates for some eligible customers, including businesses, charities, and public sector organisations. In effect, it worked as a temporary price cap on energy prices for businesses.

The scheme began on 1 October 2022 and ran for six months, until 31 March 2023.^[1] It was estimated to cost the government £7.3 billion.^[4]

As wholesale prices have since fallen from their 2022 peak, the Energy Bill Relief Scheme has closed. It's been replaced by a new Energy Bills Discount Scheme, which will provide a lower level of support for non-domestic customers until April 2024.^[5]

How does the Energy Bill Relief Scheme work?

The Energy Bill Relief Scheme provided a discount on the per-unit energy prices paid by eligible non-domestic customers. The discount was calculated by comparing the per-unit price the business would otherwise pay to a baseline government-supported price.^[1]

The discount was applied only to the per-unit rates and didn't cover other charges on energy bills such as standing charges.^[1]

The discount was applied automatically to the bills of eligible non-domestic customers by their energy suppliers. The government then compensated those energy suppliers for the discount they applied.

Who is eligible for the Energy Bill Relief Scheme?

The Energy Bill Relief Scheme was open to non-domestic energy customers, including:

How do I know what tariff my business is on?

There are a variety of energy tariffs offered to non-domestic consumers, many of which made businesses eligible for the Energy Bill Relief Scheme.

If you're not sure which tariff your business is on, you can check your latest energy bill, which should provide details about the contract, including when it ends. You can also contact your businesses energy supplier or energy broker for more information about your tariff.

How to apply for the Energy Bill Relief Scheme

You didn't need to apply for the Energy Bill Relief Scheme. If you were eligible, your energy supplier should have automatically applied the discount to your bills.

If you believe you didn't receive the discount when you should have, you should first contact your energy supplier.

Is there any other government support available?

The Energy Bill Relief Scheme ended on 31 March 2023.^[1] It was replaced by the Energy Bills Discount Scheme (EBDS), which will run for a year, from 1 April 2023 through 31 March 2024.^[5]

The Energy Bills Discount Scheme is less generous, reflecting the stabilisation of wholesale energy prices in 2023. Like the Energy Bill Relief Scheme, the scheme offers a discount on the per-unit costs of gas and electricity.^[5]