The Energy Bills Discount Scheme for businesses

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

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The Energy Bills Discount Scheme - what you need to know

The government Department for Energy Security and Net Zero (DESNZ) has announced the Energy Bills Discount Scheme (EBDS) for business energy customers in Great Britain.

This replaces the 6-month Energy Bill Relief Scheme (EBRS) which ran from 1 October 2022 until 31 March 2023.

It has been designed to reduce business energy consumers’ exposure to the volatile wholesale energy markets over the next twelve 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 a 12-month period, starting after 1 April 2023. 

The maximum discount has been set for electricity at 1.961p/kWh, with a price threshold of 30.2p/kWh. For gas, the maximum discount is 0.697p/kWh, with a price threshold of 10.7p/kWh.

Customers do not need to take any action to access the standard EBDS support. If your business is eligible for additional support this application must be made via the government’s EBDS application process.

Eligibility

Customers on a fixed, flexible, or default contract may be eligible for the scheme. Discounts will start to be applied to eligible May invoices (for April's consumption) and then will continue to be applied during the supported scheme period which is due to end on 31 March 2024. This support is targeted at all eligible non-domestic energy consumers, this includes businesses, charities, and public sector bodies. The relative discount will be applied if the wholesale prices are above a certain price threshold. Energy and Trade Intensive Industries (ETIIs) and Qualifying Heat Suppliers (QHS) can apply via the government's application process to receive a higher level of support.

  • FIXED CONTRACT

    All fixed contract customers will be eligible for the EBDS discount providing they meet the relevant thresholds. The discounts will automatically be applied from May invoices for April's energy consumption.

  • OUT OF CONTRACT (DEEMED AND EXTENDED)

    All deemed or extended supply contracts will be eligible for the EBDS discount providing they meet the relevant thresholds.

  • FLEXIBLE CONTRACT

    All flexible contract customers will be eligible for the EBDS discount providing they meet the relevant thresholds. 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. The government is encouraging customers on flexible contracts to continue to procure energy in the usual way. Cashing in, or changing contracting positions or financial instruments, or other similar actions in order to maximise support under the scheme may impact eligibility.

Eligibility for additional support

Are you an Energy and Trade Intensive Industry (ETII)?
Are you a Qualifying Heat Supplier (QHS)?

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To find out more about the Energy Bills Discount 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 Bills Discount Scheme

When does the EBDS start and how long will it last?
Will all businesses receive the same support?
How and when will the EBDS support be applied to invoices?
What types of businesses are eligible for EBDS support?
Do I need to apply for the scheme?

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