In response to the challenges posed by increasing energy prices, the UK Government launched the Energy Bill Discount Scheme (EBDS), which replaces the Energy Bill Relief Scheme (EBRS). This new initiative offers discounted unit rates on fixed-price contracts signed on or after 1 December 2021. Businesses out of contract or on variable price contracts are also eligible.

The new scheme strikes a balance between supporting businesses over the next 12 months and limiting taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion (down from c. £18 billion EBRS) based on estimated volumes.

As per the current scheme, the government will provide a discount on your gas and electricity unit prices. Eligible non-domestic consumers will now receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024, subject to a maximum discount. The relative discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users in Great Britain and Northern Ireland, these maximum discounts have been set at:

• Electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
• Gas - £6.97 per MWh with a price threshold of £107 per MWh

Due to the initial confusion surrounding the EBDS, over the last few months the government has amended the scheme to make changes a little easier to understand, and to also put some onus on the consumer to apply for support on a case-by-case basis. 

The scheme is made up of three different parts:

Baseline discount: The baseline discount provides some support with energy bills for eligible non-domestic customers in Great Britain and Northern Ireland – this support is applied automatically and is capped at 1.96p/kwh (electricity) and 0.69p/kwh (gas).

The Energy and Trade Intensive Industries (ETII) discount*: The ETII provides a higher level of support to businesses and organisations in eligible sectors. You need to apply to get this support. 

The Heat Network discount: This provides a higher level of support to heat networks with domestic end consumers. You need to apply to get this support.

IMPORTANT TO NOTE: Eligible organisations have 90 days from the scheme introduction date of 26 April to submit an application for the higher support. If a heat network it supplies becomes eligible after the scheme introduction date, the organisation will have 90 days to apply from the date that the heat network becomes eligible.

Guide time on application is approximately 30 minutes. We urge you to take action now before it's too late to apply for additional support. The deadline is 25 July.

In order to be considered for the ETII and Heat Networks Schemes, all applications must be completed using this link.

More information on the EBDS can be found on the Government website.

Here, the NFU provides details of the lobbying work they have been doing for farmers and growers throughout the energy crisis.

*A list of sectors eligible for the Energy and Trade Intensive Industries (“ETII”) scheme can be accessed here.