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Energy Bill Relief Scheme For Businesses

21 September 2022 | 8 minutes

On 21 September, the Department for Business, Energy and Industrial Strategy (BEIS) revealed plans to help cut energy costs for businesses. Through a dedicated Energy Bill Relief Scheme, the government has committed to providing a discount on wholesale gas and electricity prices for all non-domestic customers.

To administer support, a Supported Wholesale Price has been set – expected to be £211/MWh for electricity and £75/MWh for gas, which is less than half that of the wholesale prices anticipated this winter. The discount will apply to fixed energy contracts agreed on or after 1 April 2022. Customers on default, deemed or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme. The amount of this Maximum Discount is likely to be around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments.

Running for an initial six-month period, relief will be provided for business energy usage between 1 October 2022 and 31 March 2023. Customers do not need to take action to access support, with discounts automatically applied to energy bills and savings set to be first seen in October.

Commenting on the announcement, Jodie Eaton, CEO of Shell Energy UK Ltd, said: “The Energy Bill Relief Scheme is welcome news for non-domestic energy customers, many of whom have experienced escalating costs in-line with a rapidly increasing global wholesale price. With the aim of supporting growth, preventing unnecessary insolvencies and protecting jobs, the scheme will be equivalent to the Energy Price Guarantee for households, which was unveiled by Prime Minister Liz Truss earlier in September.

“The level of price reduction for each business will vary depending on their contract type and circumstances, but the scheme is set to benefit everyone. Over the coming days, we’ll be in touch directly with customers to explain the savings in further detail and answer any questions you may have.”

For more information about the Energy Bill Relief Scheme, visit A parallel scheme, based on the same criteria and offering comparable support, is set to be established in Northern Ireland over the coming weeks.

Shell Energy business customers impacted by these changes do not need to contact us. We will be in touch soon with further information.

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