Energy Bills Discount Scheme revealed

by | 10 Jan 2023

Businesses will receive the discount automatically from March

The government has announced the introduction of an Energy Bills Discount Scheme from 31 March 2023 to March 2024, replacing the current support providing discount on gas and electricity unit prices.

The new scheme will give businesses with an energy contract discounts on wholesale prices of up to £6.97 per megawatt an hour for electricity and £19.61 per megawatt an hour for gas. This is much less than the current discount as wholesale energy costs have fallen back to where they were before just before Russia’s invasion of Ukraine, and have almost halved since the current scheme was announced.  

Business will receive the discount automatically from suppliers. In its announcement, the Government estimated that a typical pub will save £2,300 off their annual bill and a small retailer will save around £400. 

While there is relief at the scheme, the NHBF has voiced concern at its reach. “Many will see the discount swallowed up in the first month or two of the energy price increases they are already facing,” said Richard Lambert, NHBF chief executive.

He stated that energy costs are the first or second largest outgoing for most hair and beauty salons and barbershops. “Further support will be needed to ensure that this sector can continue to make its significant contribution to vibrant high streets and community wellbeing,” he added.

 

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