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Last week, a few days before the latest mini-budget statement, The Department for Business, Energy and Industrial introduced its new support measure for UK businesses, who struggle with the rising costs of energy bills. The Energy Bill Relief Scheme aims to cut wholesale energy prices for non-domestic customers by more than 50%, starting 1st October 2022 until 31st March 2023. The bill covers all private sector businesses, along with charities schools, hospitals and care homes.
In this article, we’ll explain how the Energy Bill Relief Scheme, works.
The Government will discount non-domestic energy bills by comparing the estimated wholesale portion of the unit price a business would pay; to a baseline supported price, which is lower than the currently expected wholesale rate for this winter.
For Great Britain, it has been set to:
£211 per MWh for electricity
£75 per MWh for gas
A similar rate is expected to be set for Northern Ireland as well.
If eligible, the price reduction will be applied automatically by your energy supplier. You do not need to apply for the scheme.
Businesses with fixed-priced tariffs agreed on or after 1 April 2022, will get support if the calculated wholesale element of their price is above the government-supported price.
Similar to fixed-tariff contracts, the reduction will be based on the difference between the government supported-price and the relevant variable rate. However, this will be subjected to a maximum limit of discount.
The Government’s guidance, in this case, would be to go ahead and set up a new contract. Your new supplier will then apply any eligible price reductions automatically, for the duration of the scheme.
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