In 2022, UK businesses were hit with multiple challenges, such as labour shortages, supply chain issues, and rising inflation. Adding to their woes, energy costs skyrocketed due to the global oil and gas crunch. To prevent thousands of business closures, the UK Government launched the Energy Bill Relief Scheme (EBRS) in October 2022. However, as the EBRS ends in March 2023, a new scheme called the Business Energy Bills Discount Scheme (EBDS) will replace from April 1st.
The new programme still limits the gas and electricity bills that businesses will face, although it is less generous than the previous scheme. Discover more about the new scheme and how it can benefit your business.
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The UK Government has decided to change the Business Energy Relief Scheme (BERS) for two key reasons. Firstly, the cost of the previous scheme has been deemed unsustainable, with estimates suggesting it could have cost the taxpayer over £18 billion by March 2023. Secondly, global oil prices have fallen significantly since September 2021, and wholesale gas prices are now lower than before the conflict in Ukraine. As a result, natural market forces are already lowering business energy bills, and the government has introduced a new relief package worth £5.5 billion over the next 12 months.
The Energy Bill Discount Scheme is available for all eligible organisations in the UK, including businesses, charities, and public sector entities that purchase gas and electricity from a licensed energy supplier. However, some energy-intensive businesses, primarily in the manufacturing sector, may qualify for a higher rate of relief based on their level of energy consumption.
The Energy Bills Discount Scheme (EBDS) is set to start on 1st April 2023 and run until 31st March 2024. This new scheme will automatically apply unit discounts of up to £6.97/MWh for gas and up to £19.61/MWh for electricity to eligible business customers with a contract from a licensed energy supplier. However, businesses purchasing energy below the government’s ‘wholesale price threshold’ will not receive energy support. The scheme will provide higher support to businesses in energy-intensive sectors with discounts capped at £40.0/MWh for gas and £89.1/MWh for electricity, subject to certain conditions.
Navigating financial challenges as a business owner can be tough, especially when it comes to rising energy costs, raw materials, rent, business rates, and more. However, there are solutions available. HC Finance Group partners with lenders who can offer fast and cost-effective funding options for various financial issues, such as equipment and vehicle financing, working capital loans, and VAT loans. To learn more about accessing the right funding solutions, register with HC Finance Group today.
The UK Government is taking a range of measures to help businesses during these challenging times. One of these measures is the support offered through the Energy Bills Discount Scheme. In addition to this, businesses in England can also benefit from business rate relief, fuel duty cuts, and extensions to alcohol duty freezes. For smaller businesses, there are protections from corporation tax increases, ensuring that these companies can continue to operate without additional financial burdens. The government is committed to supporting UK organisations and is actively seeking ways to help them during these uncertain times.
There’s no need to apply for a discount. Eligible businesses that have benefited from the previous scheme will automatically receive savings under the new Energy Bills Discount Scheme. There’s no need to contact your energy provider or take any action to receive the discount. However, if you’re unsure whether you’re eligible or have any other questions, it’s always a good idea to contact your energy provider or a trusted advisor for guidance.
If you have a new business and haven’t yet signed an energy contract, it’s important to do so as soon as possible. This will ensure that you receive relief savings under the Energy Bills Discount Scheme. The discount will be automatically deducted from your new energy bill. It’s recommended that you compare energy suppliers and contracts to find the best deal for your business, considering the potential savings from the discount scheme.
Considering the recent hike in energy costs, it is essential to be strategic about renewing your energy contract. Although global oil and gas prices have decreased since September 2022, business energy rates are still expected to remain high this year. If your energy contract is up for renewal soon, it is advisable to seek expert advice. At HCFG, we can help you assess the market and recommend the best time to forward-purchase your next energy contract. Simply upload your energy bill, and our team will guide you through the process.
HC Finance Group helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a lead generation agency and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. HC Finance Group can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness.
HC Finance Group Ltd is a company incorporated in England and Wales with registered number 14705045 whose registered address is Unit 5, Grange farm Buildings, Grange Road, Tiptree, Essex. CO5 0QQ
01206 581015
info@hcfinancegroup.com
STUDIO 9, GRANGE FARM BUILDINGS
GRANGE ROAD
TIPTREE, ESSEX
CO5 0QQ
HC Finance Group helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a lead generation agency and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. HC Finance Group can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness.
HC Finance Group Ltd is a company incorporated in England and Wales with registered number 14705045 whose registered address is Unit 5, Grange farm Buildings, Grange Road, Tiptree, Essex. CO5 0QQ
