supporting, developing and representing community groups,
voluntary organisations, social enterprises and volunteering
Energy Bill Relief Scheme for third sector organisations, businesses & other non-domestic customers
The UK Government has announced a new Energy Bill Relief Scheme for businesses, third sector organisations, and other non-domestic customers, where discounts will be applied to energy usage initially between 01 October 2022 and 31 March 2023.
To administer support, the government will implement a supported wholesale price of £211 per MWh for electric and £75 for gas, which it said is less than half the wholesale prices previously anticipated this winter.
Organisations on fixed price contracts agreed on or after 01 April 2022 will see their per unit energy costs automatically reduced by the relevant p/kWh, so long as they exceed the supported wholesale prices. Those on default, deemed or variable tariffs will also receive support through a per-unit discount on energy costs, up to a maximum of around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments.
For organisations on flexible purchase contracts, typically some of the largest energy-using businesses, suppliers will calculate a reduction according to the specifics of that company’s contract and subject to the maximum discount.
The discount will be automatically applied by energy suppliers, meaning that organisations do not need to apply to access the support.
A review of the scheme will occur after three months to identify how it can continue to support the most vulnerable non-domestic customers after March 2023.