How will the Energy Bills Discount Scheme affect my business?
How will the Energy Bills Discount Scheme affect my business?
A new energy bills discount scheme replaces the current energy support programme after April, the government has announced.
The UK government launched an Energy Bill Relief Scheme last year to help businesses deal with skyrocketing energy prices. The scheme intended to run until March 2023, the government also said.
A new scheme will run from April 2023 until March 31, 2024 and will be capped at £5.5bn
Here are the details of the new Energy Bills Discount Scheme:
What will my bill be when the Energy Bill Relief Scheme ends?
Businesses receive a per-unit discount to their energy bills after the Energy Bill Relief Scheme ends and the Energy Bills Discount Scheme starts:
- Gas: Most businesses will see a per-unit discount of up to at £6.97 per MWh applied to their gas bill
- Electricity: Most businesses will see a per-unit unit discount of up to £19.61 per MWh applied to their electricity bill
- These discounts are only applied if the wholesale price exceeds a certain threshold (£107 per MWh for gas and £302 per MWh for electricity).
- Energy intensive and trade-intensive businesses will also receive greater support of £89 per MWh with a price threshold of £185 per MWh for electricity and £40 per MWh with a price threshold of £99 per MWh for gas.
- Energy and trade-intensive sectors have to apply for support. Other, eligible businesses will have their discounts applied automatically by their suppliers.
Is there any additional support for businesses?
Businesses in England also benefit from support with their business rates bills, worth £13.6 billion over the next five years. Additionally, they can benefit from a UK-wide £2.4 billion fuel duty cut. There is also a six month extension to the alcohol duty freeze. Moreover, businesses with profits below £250,000 will be protected from the full corporation rate rise. Those making less than £50,000 – the vast majority of UK companies – do not face any corporation tax increase at all.
How can NGP help?
Keep updated by checking our website and LinkedIn pages regularly.
You can also get in touch for help with your energy strategy at: enquiry@ngpltd.co.uk or call: +44 (0)3 300 300 800