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.
The support will reduce bills for customers who are on a variable rate contract and those who agreed a Fixed contract on or after 1 December 2021. Since you are on a variable contract, you may be paying higher rates. We recommend you contact us for a contract, and you’ll still benefit from the Energy Bills Discount Scheme if you do.
We’ll automatically apply the price reduction to your bill, and is based on the wholesale price of electricity. The discount will reflect the Government Supported Price of £302/MWh (30.2p/KWh).
The discount applied will be in pence per kilowatt hour (p/kWh), and at meter supply point.
More information regarding EBDS and eligibility can be found on the Government website.
Contracts on supply over the scheme period, who are categorised as Variable (deemed, Out of Contract and variable rate) are eligible for a fixed discount of 1.961p/KWh, subject to the Government Supported Price of £302/MWh (30.2p/KWh).
For customers on deemed and out of contract rates, your rates have also been calculated in line with the recent government requirements relating to Qualifying Financially Disadvantaged Customers.
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.