Energy Bills Discount Scheme
The Government has introduced the Energy Bills Discount Scheme. This scheme will apply a discount to energy usage between 1 April 2023 to 31 March 2024, based on the wholesale price of energy.
Wholesale prices are what energy suppliers pay to purchase the energy. They are not retail prices, which is what end-users pay. Retail prices include other costs such as supplier margins, network costs and green levies.
If you’re on a Flex product, you’re eligible for a discount based on your monthly baseload Weighted Average Price (WAP) between 1 April 2023 to 31 March 2024.
Any price reduction will depend on the difference between your monthly weighted average baseload price, determined by your individual hedging approach, and the Government Supported Price of £302/MWh (30.2p/KWh). The maximum support available per unit of energy will also be limited to £19.61.
We’ll compare your calculated WAP to the relevant Government Supported Price to calculate your discount.
The discount applied will be in pence per kilowatt hour (p/kWh), and at meter supply point. Cashing in or changing contracting positions or financial instruments, or other similar actions in order to maximise support under the scheme will impact eligibility.
More information regarding EBDS and eligibility can be found on the Government website.
Customers with a monthly Weighted Average Price (WAP) above the Government Supported Price of £302/MWh (30.2p/KWh) will get a discount to this level (subject to a maximum discount of £19.61).
WAP should include all fixes and unfixes for the period.
Discount applied at Meter Supply Point (MSP) to MPAN level kWh consumption.
This discount will be calculated on a monthly basis.
Opus Energy are following Government guidance that WAP should not include any costs related to trading fees, volume tolerance, shape/imbalance premiums.
Opus Energy have followed Government guidance that cash-out residuals should be included in the WAP.
What if you have additional energy market exposure?
(The Energy and Trade Intensive Industries and The Heat Network Operators)
If you’ve entered into any arrangements outside of your supply contract to manage risks associated with wholesale prices and are expected to use more than 0.5GWh a year or use more than 0.5MW in any half hour, then you need to be aware of part 4 of the EBDS Regulations. You can find more details on the Government website.