The Energy Bill Relief Scheme for businesses

Read more about the scheme and how it intends to support UK businesses.

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The Energy Bill Relief Scheme - what you need to know

On 21 September, the government department for Business, Energy and Industrial Strategy (BEIS) announced the Energy Bill Relief Scheme (EBRS) for business energy customers in Great Britain.

It has been designed to reduce business energy consumers’ exposure to the volatile wholesale energy markets over the next six months and sees the government commit to providing a discount on wholesale gas and electricity prices for all non-domestic customers.

The discount will run for an initial six-month period, starting after 1 October 2022. 

Customers do not need to take action to access support, as the discounts will be automatically applied to eligible energy bills, with savings set to be first seen against October's consumption.

Eligibility

Customers on a fixed, flexible or default contract may be eligible for the scheme. The discount will run for an initial six-month period, starting on 1 October 2022. Discounts will start to be applied to eligible November invoices (for October’s consumption) and then will continue to be applied during the supported scheme period which is due to end on 31 March 2023.

  • FIXED CONTRACT

    The discounts will automatically be applied from November invoices for October's energy consumption. A floor price has been introduced to ensure prices do not fall below 21.1p/kWh for electricity or 7.5p/kWh for gas.

  • NEW FIXED PRICE CONTRACTS

    As new fixed-price contracts will be signed after 1st December 2021, these customers will be eligible for the EBRS discount in the same way as existing fixed-price contracts.

  • FLEXIBLE CONTRACT

    All flexible contract customers will be eligible for the EBRS discount. If you’re on a flexible purchase contract, your price reduction will depend on the difference between your monthly weighted average baseload price (determined by your individual hedging approach) and the government supported price. In this case the maximum support available per unit of energy will also be limited by the maximum discount and the floor price.

  • OUT OF CONTRACT (DEEMED AND EXTENDED)

    All deemed or extended supply contracts will be eligible for the EBRS discount. The discount will reflect the difference between the government-supported price and the relevant wholesale price but is subject to a ‘maximum discount’ (£345/MWh for electricity and £91/MWh for gas). An additional reduction has been given by the government for all Qualifying Financially Disadvantaged Customers (QFDC). Shell Energy has taken the decision to categorize all Deemed and Extended supply customers as QFDC and all relevant customers will automatically receive this additional QFDC discount. Read more in our guide below.


To find out more about the Energy Bill Relief Scheme or discover other useful articles and blogs, please visit Energy Insights which is your hub of useful resources. 

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Our FAQS about the Energy Bill Relief Scheme

What types of businesses are eligible for this support?
What business energy contracts will be eligible for support under this scheme?
How and when will the support be applied to invoices?
Will non-commodity costs also be discounted?
Do I need to apply for the scheme?

Find more frequently asked questions and answers in our Help Centre.